China blasts new US tariff threat, warns it will retaliate.

 (AP Photo/Andy Wong, File)

BEIJING (AP) -- China on Tuesday threatened "comprehensive measures" in response to U.S. President Donald Trump's new tariff hike, raising the possibility Beijing might target operations of American companies.

Trump's announcement fueled fears that economic losses, limited so far to companies hit by U.S. or Chinese tariff hikes, might spread if the dispute chills global trade.

Global stocks fell after Trump's announcement. China's market benchmark dropped 3.8 percent while Hong Kong's lost 2.8 percent. In Europe, Germany's main index was off 1.3 percent and France's lost 1.1 percent.

By Joe Mcdonald.

Full story at Yahoo News.