China is not backing down from Trump's tariff war. What next?

The trade war between the world's two biggest economies shows no signs of slowing down - Beijing has vowed to "fight to the end" hours after US President Donald Trump threatened to nearly double the tariffs on China.

That could leave most Chinese imports facing a staggering 104% tax - a sharp escalation between the two sides.

Smartphones, computers, lithium-ion batteries, toys and video game consoles make up the bulk of Chinese exports to the US. But there are so many other things, from screws to boilers.

With a deadline looming in Washington as Trump threatens to introduce the additional tariffs from Wednesday, who will blink first?

"It would be a mistake to think that China will back off and remove tariffs unilaterally," says Alfredo Montufar-Helu, a senior advisor to the China Center at The Conference Board think tank.

"Not only would it make China look weak, but it would also give leverage to the US to ask for more. We've now reached an impasse that will likely lead to long-term economic pain."

Global markets have slumped since last week when Trump's tariffs, which target almost every country, began coming into effect. Asian stocks, which saw their worst drop in decades on Monday after the Trump administration didn't waver, recovered slightly on Tuesday.

Meanwhile, China has hit back with tit-for-tat levies - 34% - and Trump warned that he would retaliate with an additional 50% tariff if Beijing doesn't back down.