US President Donald Trump threatens to impose 10% tariff on $200 billion Chinese import goods, Reuters reports. It makes China take retaliation measures and results in growing trade tensions between two largest economies in the world.

New tariffs will be implemented, if China does not change its trade practices and not cancel its decision to apply tariffs to $50 billion American import products.

News caused another slump in world stocks and weakening of both dollar and yuan during Asian trade on Tuesday.

Washington and Beijing move very fast toward open trade conflict after several rounds of negotiations, aimed to resolve US complaints about unfair Chinese industrial policy, failed. Besides, US accuses China of restricted market access and existing of large trade deficit valued at $375 billion.

Growing tension in trade relationships between two countries can put additional pressure on slowing Chinese economy that will then have negative effect on global growth.