China has announced sweeping new tariffs of 84% on all imports of U.S. goods, a sharp escalation in its trade standoff with President Donald Trump that triggered renewed stock market losses and heightened fears of a prolonged global economic conflict.

The Chinese Ministry of Finance said Wednesday that the new 84% tariffs will take effect on Thursday, up significantly from the 34% rate announced previously.

The announcement came just hours after the United States implemented further tariff increases on imports from dozens of countries, with duties on Chinese goods—since Trump’s return to office—reaching an unprecedented 104%.

Markets, already under pressure from the escalating trade war, responded with another wave of losses. Major stock indices across the U.S. and Europe fell sharply.

The S&P 500 dropped 0.4% at the opening bell, while the Dow Jones Industrial Average slipped 0.7%. In Europe, London’s FTSE 100 plunged 3.5%, Germany’s DAX declined 3.8%, France’s CAC 40 fell 3.9%, and Spain’s IBEX lost 3.2%.

Reacting to the tariffs in a post on Truth Social, President Trump reiterated his call for companies to move operations to the U.S.:

“This is a GREAT time to move your COMPANY into the United States of America, like Apple, and so many others, in record numbers, are doing. ZERO TARIFFS, and almost immediate Electrical/Energy hook ups and approvals. No Environmental Delays. DON’T WAIT, DO IT NOW!

BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”

Earlier in the day, Chinese officials stated that while the country does not seek a trade war, it “will never sit idly by and watch the legitimate rights and interests of the Chinese people be damaged and deprived.”

Global markets have been in turmoil since the U.S. enacted broad 10% tariffs over the weekend, leading to heavy sell-offs and stoking fears of a recession.