The world’s second-largest economy has responded to President Donald Trump’s controversial trade tariffs. China’s commerce ministry proposed a list of 128 U.S. products as potential retaliation targets, according to a statement on its website posted Friday morning.
Beijing will take measures against the 128 U.S. goods in two stages if it cannot reach an agreement with Washington, the ministry said, adding that it could take legal action under World Trade Organization rules. Asian stock markets took a dive on the news, with Japan’s Nikkei index sliding as much as 4 percent.
Trump signed an executive memorandum on Thursday that will impose tariffs on up to $60 billion in Chinese imports. “This is the first of many” trade actions, the president said. The new measures will primarily target certain products in the technology sector where Beijing holds an advantage over Washington.