China has declared that it will retaliate against the United States to protect its interests following President Donald Trump's warning of a 50% tariff increase on Chinese imports. China's Commerce Ministry criticized the U.S. for its unilateral actions and labeled it as baseless bullying. Trump's tariff threats have sparked concerns about a potential damaging trade war, causing volatility in stock markets from Tokyo to New York. In response, Asian markets saw increased trade, with Japan's Nikkei 225 index bouncing back by over 6% after a previous 8% plunge. Hong Kong and Shanghai markets also recovered with gains, as Japan's Prime Minister discussed strategies to address the U.S. tariffs with his Cabinet. They appointed a trade negotiator and planned diplomatic efforts to manage the impact of tariffs on Japanese industries.