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BEIJING (Reuters) - China has increased tariffs by up to 25 percent on 128 U.S. products, from frozen pork and wine to certain fruits and nuts, escalating a dispute between the world’s biggest economies in response to U.S. duties on imports of aluminum and steel.

The tariffs, which take effect on Monday, were announced late on Sunday by China’s finance ministry and matched a list of possible tariffs on up to $3 billion in U.S. goods published by China on March 23.

Soon after the announcement, an editorial in the widely read Global Times newspaper warned that if the United States had thought China would not retaliate or would only take symbolic countermeasures, it could “say goodbye to that delusion”.

“Even though China and the U.S. have not publicly said they are in a trade war, the sparks of such a war have already started to fly,” the newspaper said.

The Ministry of Commerce said it was suspending its obligations to the World Trade Organization (WTO) to reduce tariffs on 120 U.S. goods, including fruit and ethanol. The tariffs on those products will be raised by an extra 15 percent.

Eight other products, including pork and scrap aluminum, would now be subject to additional tariffs of 25 percent, it said, with the measures effective starting April 2.

“China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests,” the finance ministry said.

China is moving swiftly with retaliatory action amid escalating trade tension with the United States, which has rocked global financial markets in the past week as investors fear a full-blown trade dispute between the two economic superpowers will damage world growth.

In response to China’s move, Washington said Beijing’s subsidies and overcapacity were behind the action on steel.

“Instead of targeting fairly traded U.S. exports, China needs to stop its unfair trading practices which are harming U.S national security and distorting global markets,” White House spokeswoman Lindsay Walters said in a statement.

MORE TARIFFS COMING FROM WASHINGTON

U.S. President Donald Trump is separately preparing to impose tariffs of more than $50 billion on Chinese goods following an investigation under Section 301 of the 1974 U.S. Trade Act.

The U.S. administration says China has systematically misappropriated American intellectual property - allegations China denies.

About the Section 301 investigation, China had “yet to unsheathe its sword,” the official Xinhua news agency said.

Sometime this week, the Trump administration is expected to unveil a list of Chinese goods that could be subjected to new U.S. tariffs.

U.S. technology industry officials said they expected the list to target products that benefit from Beijing’s “Made in China 2025” program, which aims to upgrade the domestic manufacturing base with more advanced products.

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FILE PHOTO: Several-week-old pigs stand in a pen inside a barn at Paustian Enterprises in Walcott, Iowa, November 19, 2014. REUTERS/Daniel Acker/File Photo

China has repeatedly promised to open

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currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

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