China retaliates against U.S. tariffs, escalates trade war

BEIJING - Who will blink first?

China on Wednesday matched dollar for dollar the Trump administration's plan to slap tariffs on $50 billion of imported Chinese goods, issuing its own list of U.S. products of comparable value that would be subject to hefty duties should the White House follow through with its tough trade sanctions.

Beijing's swift and broad retaliatory response at first seemed to confirm fears that the world's two largest economies were hurtling toward a trade war that would be costly for consumers and companies, and damage the global economy.

Anxious U.S. businesses pleaded for cooler heads, and investors panicked. But after sinking sharply when markets opened Wednesday, U.S. stocks not only recovered, but the Dow ended the day up 231 points.

The rebound followed assurances by White House officials that despite President Donald Trump's sharp rhetoric and threats, chances are good that the tit-for-tat trade