Washington (CNN) President Donald Trump's vow to enact revenge on China for "killing" the US on trade was a signature refrain of the 2016 campaign, but his latest tough talk risks stoking an adversarial economic standoff with Beijing that could prompt geopolitical retaliation on issues ranging from North Korea to the South China Sea. Trump's surprise announcement on Thursday that the US will institute tariffs on steel and aluminum imports has upset stock markets, angered US allies around the world and even drawn criticism from members of his own party -- but whether it represents the start of a global trade war is likely to depend on China's reaction. Beijing's immediate response Friday was measured in tone -- urging the US "to abide by the multilateral trade rules and make contributions to the international trade and economic order" -- and concerns about potential retaliation for the tariffs have largely centered on China imposing its own punishing economic measures. But Chinese officials have previously warned they are willing to do what they think is necessary to "defend our rights" should Trump introduce additional measures that target the Communist nation more heavily and directly. In addition to the vast array of painful economic response options at its disposal, China could target US geopolitical interests if Trump escalates trade tensions.

Source: CNN March 03, 2018 06:00 UTC