The United States and China reciprocally invoked additional 25 percent tariffs on $34 billion worth of their imports on Friday, stoking fears that a full-fledged trade war will hurt the global economy and undermine the world free trade system.

Washington slapped the first round of the new tariffs on bilateral imports worth $50 billion for alleged intellectual property and technology theft, while Beijing quickly struck back on an equal amount of American products.

"The United States has waged the biggest trade war in economic history against the rules of the World Trade Organization," China's Commerce Ministry said in a statement, describing the U.S. tariffs as "textbook trade hegemony."

"We are forced to make a necessary counterattack to protect the core profits of the country and the interests of people," it said in expressing readiness to take reciprocal measures against the United States.

In a further move to escalate tensions between the world's two largest economies, U.S. President Donald Trump said Washington could ultimately raise tariffs on more than $500 billion in Chinese products -- nearly the total value of U.S. imports from the country last year.

(President Trump greeting supporters in Great Falls, Montana)
[Getty/Kyodo]

Aside from the $34 billion in Chinese products, Trump said Thursday, "You have another 16 (billion dollars) in two weeks and then, as you know, we have $200 billion in abeyance and then after the $200 billion, we have $300 billion in abeyance."

"So we have 50 plus 200 plus almost 300," Trump, who is keen to reduce the huge U.S. trade deficit with China, told reporters aboard Air Force One en route to a rally in Montana.

Last month, the Trump administration said the new tariffs would apply to 1,102 Chinese products totaling $50 billion. Of the total, those on 818 products, such as cars, aircraft and industrial robots covering $34 billion, went into effect on Friday.

The United States plans to invoke the duties on the remainder after taking necessary procedures, such as conducting public hearings.

Trump has threatened to impose additional tariffs on Chinese goods if Beijing fails to accede to his demands and instead retaliates.

"You saw with China, $50 billion and another $200 billion frankly is waiting," he said at the rally in Great Falls, Montana, referring to envisaged additional 10 percent tariffs on $200 billion in Chinese imports.

Accusing China of conducting "unfair" trade practices, Trump has pledged to protect U.S. intellectual property, stop noneconomic transfers of industrially significant technology and intellectual property to China, and increase access to the Chinese market for American products.

Touching on China's massive trade surpluses with the United States, Trump told his audience, "They've been killing us."

The U.S. goods trade deficit with China totaled $375.23 billion last year, nearly half the U.S. trade deficit globally, according to U.S. Commerce Department data.

Many economists have voiced concerns that the U.S.-China tit-for-tat tariff fight is likely to shrink trade volume worldwide, which would weigh on the global economy that has been on a recovery track.

"If U.S.-China trade tensions intensify, it would have an adverse effect on not only China but surrounding countries" that have close economic relations with Asia's biggest economy, said Toru Nishihama, chief economist at the Dai-ichi Life Research Institute.

With China deepening ties with Japan, the Association of the Southeast Asian Nations and the European Union in the business field, the trade conflict triggered by the United States "would result in a global economic slowdown," Nishihama added.

Ma Jun, a member of the monetary policy committee of the People's Bank of China, told Chinese media that the trade war is estimated to push down China's gross domestic product by 0.2 percentage point against a backdrop of a downturn in exports.

Other analysts added the political relationship between Washington and Beijing is expected to worsen, possibly affecting security policy in Asia, as the United States and China have been at odds over Taiwan and the South China Sea.

Trump's protectionism has "already caused criticisms and worries across the board," Chinese Foreign Ministry spokesman Lu Kang told reporters.

The U.S. trade restriction is "certain to deal a blow to the global trade order, rattle the global financial market, hamper global economic recovery and beset multinational companies, smaller firms and ordinary consumers across the globe," he said.

China has accused the United States of "opening fire" on the world with tariffs that took effect Friday, warning that it would respond the moment that duties on $34 billion in its products kick in.

Beijing slapped additional 25 percent tariffs on 545 U.S. imports totaling $34 billion -- including automobiles and agricultural products such as soy beans and beef -- as part of a retaliatory plan involving 659 items worth $50 billion.

Chinese state-run media reported that Beijing's measures against Washington formally took effect at 12:01 p.m. on Friday at the same time as the United States activated its tariffs against China.

Later in the day, the Chinese Commerce Ministry said it had filed a challenge against the additional U.S. tariff implementation with the WTO.