Beijing's rebuke came after Trump threatened to ratchet up tariffs on US imports from the world's No. 2 economy to more than 100 percent on Wednesday in response to China's decision to match the "reciprocal" duties Trump announced last week.

China's fast and hardline approach contrasted with more emollient moves by other Asian countries. The European Union is also still consulting with member states on how hard to punch back against Trump's tariffs without causing more harm to its consumers and exporters. 

"The US side's threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side's blackmailing nature," China's commerce ministry said. 

"If the US insists on having its way, China will fight to the end."

European Commission President Ursula von der Leyen in a phone call with China's Premier Li Qiang called on Beijing to ensure a negotiated solution and stressed the need to support a fair trading system founded on a level playing field.

The two also discussed setting up a mechanism to track possible trade diversion caused by the tariffs, von der Leyen's office said, as the EU fears China will redirect cheap exports from the US to Europe.

Chinese manufacturers of goods from tableware to flooring are warning about profits, and scrambling to plan new overseas plants as they reel from the tariff news. Citing rising external risks, Citi cut its 2025 China GDP growth forecast to 4.2 percent from 4.7 percent.

The European Union has proposed counter-tariffs of its own to Trump's onslaught that has swept up dozens of countries, sent financial markets into a tailspin and fuelled expectations that the global economy may be headed for recession. 

As financial markets remained volatile, the head of the pan-European stock exchange operator Euronext said the United States was starting to resemble an emerging market.

"Fear exists all over," Stephane Boujnah told France Inter radio, saying the US had become "unrecognisable".

"There is a certain form of mourning, because the United States that we had known for the most part as a dominant nation resembled the values and institutions of Europe and now resembles more an emerging market."

Emerging markets often use targeted tariffs to protect certain industries from foreign competition.

Stock markets found a firmer footing on Tuesday after a gut-wrenching few days for investors which prompted some business leaders, including those close to Trump, to urge the president to reverse course.

European shares bounced off 14-month lows in early trading after four straight sessions of heavy selling, while global oil prices rebounded following a hefty sell-off.

US stock index futures edged higher after taking in trillions of dollars in losses since last week, as investors keenly await any sign of the US opening up for negotiations.

Japan's Nikkei index closed 6 percent higher on Tuesday while Chinese blue chips climbed 1 percent, clawing back some of the more than 7 percent slide on Monday. 

Indonesian markets were slammed, however, with stocks shedding 9 percent as trading resumed after an extended holiday. Its central bank pledged to intervene, joining efforts by other global authorities to stem the rout in recent days.

Trump said the tariffs - a minimum of 10 percent for all US imports, with targeted rates of up to 50 percent - would help the United States recapture an industrial base he says has withered over decades of trade liberalisation.