Chi­na an­nounced Fri­day that it will raise tar­iffs on U.S. goods from 84% to 125% — the lat­est sal­vo in an es­ca­lat­ing trade war be­tween the world’s two largest economies that has rat­tled mar­kets and raised fears of a glob­al slow­down.

While Trump paused im­port tax­es this week for oth­er coun­tries, he raised tar­iffs on Chi­na and they now to­tal 145%. Chi­na has de­nounced the pol­i­cy as “eco­nom­ic bul­ly­ing” and promised coun­ter­mea­sures. The new tar­iffs be­gin Sat­ur­day.

Chi­na’s Com­merce Min­istry said it would file an­oth­er law­suit with the World Trade Or­ga­ni­za­tion against the U.S. tar­iffs.

Trump’s on-again, off-again mea­sures have caused alarm in stock and bond mar­kets and led some to warn that the U.S. could be head­ed for a re­ces­sion. There was some re­lief when Trump paused the tar­iffs for most coun­tries — but con­cerns re­main since the U.S. and Chi­na are the world’s No. 1 and No. 2 economies, re­spec­tive­ly.