Last week, President Donald Trump announced plans to increase tariffs from 10% to 25% on $200 billion worth of Chinese imports that include a wide variety of products like aluminum and steel, frozen fish and meat and wood.
With investors worried about the potential economic damage on all sides from the escalating trade war, the Dow Jones industrial average fell 617 points and the technology-heavy NASDAQ has its biggest drop of the year.
The announcement suggests President Xi Jinping's government is putting its desire to end a conflict that has battered Chinese exporters ahead of the political need to look tough in the face of U.S. pressure.
Accusing Beijing of "reneging" on commitments it made in earlier talks, the nation's top trade negotiator said Monday that the Trump administration will increase tariffs on $200 billion in Chinese goods.
President Trump's comments, delivered on Twitter, came as a Chinese delegation was scheduled to resume talks in Washington, D.C., on Wednesday aimed at resolving a trade war that has shaken investors and cast gloom over the world economy.