China says it will “fight to the end” and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports.

The Commerce Ministry said Tuesday the U.S.’s imposition of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical unilateral bullying practice.”

Trump’s threat Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.

World shares and U.S. futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6% as markets calmed somewhat after the shocks from President Donald Trump ’s tariff hikes.

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Indonesia’s President Prabowo Subianto vowed to build the country’s economy with the goal of standing on “our own feet” as his administration scrambles to contain market jitters following an American decision to impose a 32% import tariff on the country’s goods.

He met investors, market players and economists in Jakarta on Tuesday to formulate how to strengthen Indonesia’s economic resilience.

“What is happening now, the world is in turmoil due to the world’s strongest economy country making policies to increase tariffs so high for many countries,” Subianto said in his opening speech at the meeting. He said the resulting uncertainty underlined the need to “rely more on ourselves to build our economy with our own feet.”

During the meeting, Chief Economic Minister Airlangga Hartarto emphasized that the Indonesian government will not take any retaliatory measures and has sent a request letter for negotiations on the reciprocal tariff policy through the United States Trade Representative the Secretary of Commerce.

“What America wants is a balancing of the trade balance,” Hartarto said, “We will increase our purchase of American products.”

World shares and U.S. futures advanced, led by gains in Tokyo

World shares and U.S. futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6% as markets calmed somewhat. The modest rebound for most markets followed a wild day on Wall Street, where stocks careened after Trump threatened to crank his double-digit tariffs higher.

Germany’s DAX gained 0.9% to 19,975.81 while the CAC 40 in Paris was up 1.3% at 7,018.79. Britain’s FTSE 100 also picked up 1.3%, to 7,804.73.

The future for the S&P 500 gained 1.5% early Tuesday while that for the Dow Jones Industrial Average was up 1.9%.

In Tokyo, the Nikkei 225 closed a smidgen over 6% higher, at 33,012.58.

Hong Kong also recovered some lost ground, but nothing close to the 13.2% dive Monday that gave the Hang Seng its worst day since 1997, during the Asian financial crisis.

The Hang Seng gained 1% to 20,036.03. The Shanghai Composite index jumped 1.4% to 3,140.15 after the government investment fund Central Huijin directed state-owned companies to help support the market with share purchases.

Pakistan markets show slight recovery

The Pakistan Stock Exchange recovered 1.5% on Tuesday after going down 3.3% overall the previous day.

The latest development comes a day after Pakistani stocks went down, with Islamabad facing 29% tariffs from the U.S.

The improvement in the stock market came after authorities said the U.S. Secretary of State Marco Rubio had spoken with Pakistan’s deputy premier Ishaq Dar about economic cooperation.

Pakistan plans to send a government delegation to Washington this month to negotiate the issue of tariffs with the administration.

Von der Leyen urges China to avoid escalating trade war with US

European Commission President Ursula von der Leyen is urging China to avoid escalating a tariff war with the United States and to help ensure that Chinese products don’t flood other markets due to the fallout.

In a phone call with Chinese Premier Li Qiang, von der Leyen “called for a negotiated resolution to the current situation, emphasizing the need to avoid further escalation,” her office said Tuesday.

She “underscored the vital importance of stability and predictability for the global economy,” and said that it was up to Europe and China “to support a strong reformed trading system, free, fair and founded on a level playing field.”

The commission negotiates trade deals and disputes on behalf of the 27 EU member countries. It is setting up a task force to monitor for any dumping as the tariffs hit trade flows.

China says US doesn’t appear to want ‘sincere dialogue’

China’s Foreign Ministry on Tuesday questioned America’s “willingness for sincere dialogue” and said Beijing would “fight to the end” after Trump threatened to impose more tariffs.

“I think what the U.S. has done doesn’t reflect a willingness for sincere dialogue,” Foreign Ministry spokesperson Lin Jian said at a news briefing.

“If the U.S. really wants to engage in dialogue, it should adopt an attitude of equality, mutual respect and mutual benefit. If the U.S. disregards the interests of both countries and the international community and insists on a tariff war and trade war, China will surely fight to the end,” Lin added.

Indian foreign minister speaks with Rubio about trade agreement

Indian Foreign Minister S. Jaishankar spoke with his U.S. counterpart, Secretary of State Marco Rubio, late Monday to push for an early conclusion of negotiations over a bilateral trade deal.

The call came days after the U.S. slapped a 26% tariff on Indian imports. India wants to seek concessions as part of the trade deal, the first tranche of which is expected by fall.

Brendan Lynch, a U.S. assistant trade representative, visited India last month to discuss the initial contours of the deal. The U.S is pushing India to grant greater market access for agricultural and dairy products, but New Delhi is reluctant since its farm sector employs the bulk of the country’s workforce and is a main source of family income.

Malaysia prime minister says ASEAN will send a delegation to Washington

Malaysian Prime Minister Anwar Ibrahim says his government and others in Southeast Asia will send a delegation to Washington to discuss the tariff situation.

In a keynote speech Tuesday at the Association of Southeast Asian Nations’ Investment Conference in Kuala Lumpur, Anwar said ASEAN leaders would try to build a consensus and present a united response to Trump’s tariffs.

“We do not believe in megaphone diplomacy,” Anwar said. “As part of our soft diplomacy of quiet engagement, we will be dispatching together with our colleagues in ASEAN our officials in Washington to begin the process of dialogue.”

Indonesia markets plunge after holiday break

Indonesia’s stock market plunged 9.2% in early trading on Tuesday, as markets in the Southeast Asian country reopened after an extended Eid holiday break.

Its currency, the rupiah, also sank to a record low, hitting 16,846 against the U.S. dollar.

The Indonesia Stock Exchange halted trading for 30 minutes following the steep decline. When it resumed, shares recovered slightly but remained down nearly 8%.

Hong Kong leader calls tariffs ‘bullying’ and ‘ruthless behavior’

Hong Kong leader John Lee has described the latest U.S. tariffs as “bullying,” saying the “ruthless behavior” has damaged global and multilateral trade and brought great risks and uncertainties to the world.

At a news conference on Tuesday, Lee pledged to take several steps to address the tariffs. He said the city would seize more opportunities in China’s development, sign more free trade agreements with other economies, and continue to push for Hong Kong’s accession to the 15-nation Regional Comprehensive Economic Partnership.

He also vowed to advance international financial cooperation, attract foreign companies and capital to Hong Kong, and support Hong Kong enterprises to cope with the tariff impacts.

New Zealand prime minister criticizes tariffs as a ‘shift away from agreed rules’

New Zealand Prime Minister Christopher Luxon has delivered stronger criticism of the U.S. tariffs, decrying what he says is a “shift away from agreed rules” of trade and warning of the risk of “backsliding into a global trade war.”

“A trade war is in nobody’s interests,” Luxon told reporters in Wellington on Tuesday. “It will slow global growth, hurt jobs and reduce the amount of money we have in our wallets.”

He said New Zealand, which is set to receive the 10% baseline tariff rate on goods exported to the U.S., would not impose retaliatory tariffs on the U.S.

The U.S. in January overtook Australia to become New Zealand’s second-largest export partner, behind China, with New Zealand exports largely made up of meat, dairy, wine and agricultural machinery.

Asian markets open higher after volatile session a day earlier

Asian markets opened higher on Tuesday, with Japan’s Nikkei 225 benchmark shooting up more than 6% after it fell nearly 8% a day earlier.

The rebound followed a wild day on Wall Street as U.S. stocks careened after Trump threatened to crank his double-digit tariffs higher.

Hong Kong also recovered some lost ground, but not anything close to its 13.2% dive on Monday that gave the Hang Seng its worst day since 1997 during the Asian financial crisis. The Hang Seng gained 1.7% to 20,163.97 on Tuesday morning.

The Shanghai Composite index jumped 0.8% to 3,121.72, South Korea’s Kospi gained 1.6% to 2,364.22, and the S&P/ASX 200 also was up 1.6%, at 7,462.60.

Japan’s prime minister meets with Cabinet after call with Trump

Japanese Prime Minister Shigeru Ishiba met with his Cabinet on Tuesday to discuss how to respond to the U.S. tariffs, after he spoke by phone late Monday with Trump.

Ishiba has appointed Ryosei Akazawa, the economy revitalization minister, as Japan’s trade negotiator with the U.S., Chief Cabinet Secretary Yoshimasa Hayashi said Tuesday. The appointment was based on an agreement between Ishiba and Trump, Hayashi added.

Japan’s prime minister also dispatched senior officials from the foreign and trade ministries to Washington to follow up on his conversation with Trump.

Ishiba is considering traveling to Washington for direct talks with Trump at an appropriate time, Hayashi said.

At Tuesday’s Cabinet meeting, Ishiba instructed his ministers to fully examine and mitigate the tariffs’ impact on Japanese industries and pursue diplomatic efforts to address them. Ishiba told his ministers the tariffs would be a blow to all industries. He said the auto industry is essential to Japan, while steel and aluminum are also key to its economy.