Dow Jones slides as Donald Trump ratchets up trade war with China

Trump ordered up identification of $200 bn in Chinese imports for additional tariffs of 10%, with another $200 bn after that if Beijing retaliates

Alarm bells rang across global markets as trade tensions between the United States and China escalated further.

The yuan also hit a five-month low overnight after US President Donald Trump threatened to impose a 10 per cent tariff on another $200 billion of Chinese goods. Beijing in turn warned about $50 billion of retaliatory penalties on US goods.

"If the US loses its senses and publishes such a list, China will have to take comprehensive quantitative and qualitative measures," according to a statement from the Ministry of Commerce. It labelled the move "extreme pressure and blackmail," and said it would