The world's two largest economies appear locked in a tit-for-tat tariff escalation as Beijing announces a massive new levy on US imports. Markets continue to be rattled amid the global economic uncertainty.

South Korea will not follow China in fighting back against tariffs imposed by the United States, its leader told CNN in an exclusive interview on Tuesday, as he touted plans to try to secure a deal with President Donald Trump.

China is reaching out to other nations as the U.S. layers on tariffs, in what appears to be an attempt by Beijing to form a united front to compel Washington to retreat