China on Tuesday imposed sanctions on five United States units of South Korea’s Hanwha Ocean Co., pledging further retaliation against the shipping industry in a growing trade and tariff dispute.

The move contributed to a global stock market slump, as investors reacted to rising tensions between the U.S. and China.

U.S. Treasury Secretary Scott Bessent criticized Beijing, stating, “This is a sign of how weak their economy is, and they want to pull everybody else down with them.”

The escalation follows Monday’s brief market relief, after President Trump hinted at a potential easing of trade tensions.

“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” Trump wrote on Truth Social.

US-China tensions intensified last week after President Trump announced that the US would impose an additional 100 per cent tariff on Chinese goods starting November 1, in response to Beijing’s planned export controls on rare earth minerals.

Beyond the mineral export restrictions, China has introduced new port fees on U.S. ships and launched an antitrust probe into Qualcomm. The country has also stopped buying U.S. soybeans, upending American farmers’ business plans.