Beijing has made its decision. After days of warning of counter measures and urging Washington to enter negotiations and "meet China halfway", it has decided to hit back – or at least threaten to retaliate with its own tariffs.

Beijing accused the United States Wednesday of "suppression" after its postal service said it was suspending parcels from China and Hong Kong, a move that could hit e-commerce giants Temu and Shein. A postal services worker at the General Post Office in Macau told AFP that parcels could still be sent to the United States from the semi-autonomous Chinese city.

Oil extended declines after China imposed levies on some US commodities, with West Texas Intermediate falling to around $72 per barrel and the global benchmark Brent hovering near $75. The yuan traded offshore extended losses with regional peers, while gold was little changed

The first punches have been thrown between the United States and China in what could amount to a short-lived trade dispute with limited economic fallout or the start of yet another lengthy and painful trade war reminiscent of President Donald Trump’s first term.