China says you slap tariffs on us, we'll slap tariffs on you.

Live from the UK, this is the Marketplace Morning Report from the BBC World Service.

I'm Leanna Byrne. Good morning.

Newton's third law of motion states that for every action, there's an equal and opposite reaction.

And that's pretty much what we're seeing in global trade right now.

China says it's ready to hit back with its own tariffs when new US import duties take effect on Tuesday.

And this tit-for-tat escalation is raising fears of an all-out trade war between the world's two

largest economies. The BBC's Lorbicker reports from Beijing. China's state-run Global

Times newspaper said the countermeasures will likely target US agricultural and food products. China

remains the biggest market for US agriculture products, even after Beijing's slap tariffs of up to

25% on soybeans, beef, pork, wheat and corn in 2018

in retaliation for duties on Chinese goods imposed by President Trump.

Analysts believe Beijing still hopes to avoid an all-out trade war

and negotiate a truce with the Trump administration.

But so far there has been no sign of a deal between the two economic giants.

Laura Bicker there, and it's not just China.

Mexico and Canada are also bracing for new tariffs starting tomorrow,

but will they actually come into force?

Kelly-on-Shaw is partner at Washington, D.C. firm Hogan Lavelles,

and was deputy assistant to the president

for international economic affairs in the previous Trump administration.

What the president has asked from both Canada and Mexico is for a reduction in the number

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