Global stock markets fell Tuesday after President Donald Trump threatened to put tariffs on another $200 billion in imports from China, and the Chinese government said it would retaliate.

The Dow Jones industrial average lost 370 points, or 1.5 percent. The Hang Seng index in Hong Kong lost 2.8 percent. Major stock indexes in Asia and Europe also took sharp losses. Trump’s new proposal calls for a 10 percent tariff on $200 billion in goods, and Beijing said it would respond with “comprehensive measures.” It doesn’t import enough goods from the US to match the scale of Trump’s proposal but could adopt other methods.

Last week Trump ordered a 25 percent tax on $50 billion in Chinese imports and Beijing matched that total. Those tariffs won’t take effect until July 6, which leaves more time to negotiate for the world’s two largest economies.

The Dow traded at 24,617 as of 10 a.m. ET. The S&P 500 index gave up 26 points, or 1 percent, to 2,746. The Nasdaq composite fell 89 points, or 0.8 percent, to 7,658.