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China will impose additional tariffs of 25 per cent on 106 US goods including soybeans, autos, chemicals, some types of aircraft and corn products, among other agricultural goods, the finance ministry said on Wednesday. The products targeted by the tariffs were worth $50billion in 2017, according to a separate statement from the commerce ministry. At the time of writing Boeing shares have already fallen by 5.9 per cent in US pre-trading markets after China reported plans for a reciprocal 25 per cent Tariff on US Aircraft. Extra tariffs will also be slapped on products such as whisky, cigars and tobacco, some types of beef, lubricants, and propane and other plastic products, the finance ministry said in its statement. Chinese vice finance minister Zhu said: "We are forced to take counter-measures.” He added that the door is still open to dialogue - China will fight if the US fights, but if Trump wants to negotiate they are open to that too.

Every blue-chip company in the Dow has fallen into the red at the start of trading. Chemicals maker DowDuPont has lost 2.8 per cent, Intel has lost 2.5 per cent, General Electric and Goldman Sachs is down 2 per cent. Every sector of the S&P 500 has also fallen. Chris Anstey, Managing Editor of Asia Cross-Asset Markets, tweeted: “If I had to characterise it, we're going from a light skirmish to a heavy skirmish. “For me a trade war would have to be something that would drag down the economic aggregates -- dragging down export numbers, ultimately dragging down GDP numbers.” The US finance ministry reported that orange juice, certain sorghum products, cotton, some types of wheat, as well as trucks, some SUVs, certain electric vehicles, will also be subject to the new duties. Saxo Group's FX strategy head John Hardy, said: “Market spooked by China tariff threats… All US-trade grain products are sharply lower on the news and equity markets have jolted back into risk-off mode.

GETTY China retaliated to Donald Trump's proposed trade sanctions on Chinese goods

“It is not entirely clear when these threatened tariffs might take effect (Trump's threatened tariffs will undergo a process of review and comment from industry as well, stretching into late May.)” Donald Trump has proposed tariffs on steel and aluminium imports in an attempt to hit China. Mr Trump wrote on Twitter: “When a country (USA) is losing many billions of dollars in trade with virtually every country it does business with, trade wars are good and easy to win. “Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”

The worst stock market crashes in history Wed, May 17, 2017 We have been witnesses to some of the worst stock market crashes ever known Play slideshow Getty Images 1 of 9 A stock market crash is a sudden dramatic decline of stock prices