China reciprocates with new tariffs on US products worth $50 billion

China quickly hit back on Wednesday at Trump administration plans to slap tariffs on $50 billion in Chinese goods, retaliating with a list of similar duties on key US imports including soybeans, planes, cars, whiskey and chemicals.

The speed with which the trade struggle between Washington and Beijing is ratcheting up - the Chinese government took less than 11 hours to respond with its own measures - led to a sharp selloff in global stock markets and commodities.

Investors are wondering whether one of the worst trade disputes in many years could now turn into a full-scale trade war between the world's two economic superpowers.

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The plan, which was announced Wednesday, would see China slap 25 percent levies on a range of U.S. goods worth about $50 billion. Though China said the timing depends on U.S. moves, the news had an immediate impact on markets, including the soybean market. 

The Chinese announcement came just a day after the White House unveiled plans for tariffs on $50 billion in Chinese imports across 1,300 categories, with 25 percent levies on Chinese goods ranging from electronics, aerospace and machinery to phones, shoes and furniture. 

Though the dollar amounts targeted by both sides are similar — $50 billion — the focus on U.S. soybean exports by China could have a particularly big impact on the United States.

Soybeans are the top U.S. agricultural export to China and U.S. soybean farmers and their allies fought hard to prevent the tariffs — something Zhu noted in the press conference. 

China's tariff list covers aircraft that would likely include older models like Boeing Co's workhorse 737 narrowbody jet, but not newer models like the 737 MAX or its larger planes. A Beijing-based spokesman for Boeing declined to comment.

Beijing's announcement triggered heavy selling in global financial markets, with U.S. stock futures sliding 1.5 percent and U.S. soybean futures plunging nearly 5 percent and on track for their biggest fall since July 2016. The dollar briefly extended early losses, while China's yuan skidded in offshore trade.

(With inputs from Agencies)