President Donald Trump has threatened to impose tariffs on an extra $200 billion worth of Chinese goods and potentially more should Beijing fight back, further escalating the trade fight between the United States and China.

Trump said this was in response to what he said was an attempt made by Beijing to keep the United States “at a permanent and unfair disadvantage.” He said the 10 percent tariffs would come into effect if China “refuses to change its practices.” This latest threat in the trade dispute between the world’s two largest economy has caused falls on stock markets.

SLIDESHOW: DONALD TRUMP’S 30 CRAZIEST TWEETS

The Dow Jones was down more than 300 points (1.6 percent) when trading opened on Tuesday in New York. In Shanghai stock markets were down 3.8 percent and in Europe some trading is down more than one percent.

China has accused the United States of “blackmail” and its commerce ministry said the country would take “qualitative” and “quantitative” measures and “fight back firmly” against additional tariffs from the U.S., according to the BBC.

50 Celebrities Who Have Died In 2018 – Tribute Slideshow

“China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology,” Trump said in a statement. “Rather than altering those practices, it is now threatening U.S. companies workers and farmers who have done nothing wrong.”

The Trump administration is threatening to impose tariffs on a total of $450 billion worth of Chinese goods.

The latest back and forth between the United States and China began Friday, when Trump announced Washington would implement tariffs on $50 billion worth of Chinese goods, such as agricultural and industrial machinery. In turn, Beijing said it would place tariffs on $50 billion worth of American goods, such as tobacco, cars, poultry and beef. Trump called this response “unacceptable.”

SLIDESHOW: Met Gala 2018 – 23 Best Dressed Stars

“The administration is essentially saying it is willing to bring a substantial amount of commercial activity in the Asia-Pacific to a screeching halt,” Center for Strategic and International Studies China expert Scott Kennedy told The New York Times.

This trade conflict with China comes at a time of trade tension between the United States and multiple other countries as well. The president has strained relations by imposing tariffs on metals from Europe, Canada and Mexico and has threatened to withdraw from the North American Free Trade Agreement.