Global markets are reeling as the U.S. and China escalate their trade war with a fresh wave of tariffs. President Donald Trump's latest round—raising duties on nearly all Chinese imports above 100%—took effect just after midnight. China's retaliatory 85% tariffs on U.S. goods caps off a week of tit-for-tat moves that have now seen each country impose two rounds of steep tariffs on the other. The European Union is also preparing to strike back with its own countermeasures.

President Trump, however, remains resolute in his stance. On his Truth Social account, he reiterated his message that companies moving their factories to the U.S. can avoid tariffs. "This is a GREAT time to move your COMPANY into the United States of America, like Apple, and so many others, in record numbers, are doing," he wrote. "DON'T WAIT, DO IT NOW!"

What to Know:

"The US escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes on China's legitimate rights and interests and seriously undermines the rules-based multilateral trading system," China's finance ministry said in a statement.

The U.S. tariffs are part of a broader wave of 104% duties on dozens of countries.