HONG KONG: China’s yuan held steady against the US dollar on Friday as markets weighed escalating global trade tensions against Beijing’s promises of more fiscal and monetary support for the economy. US President Donald Trump on Thursday threatened to slap a 200% tariff on wine, cognac and other alcohol imports from Europe, opening a new front in a trade war that has roiled financial markets and raised recession fears.

That comes after a European Union plan to impose tariffs on American whiskey and other products next month — which itself is a reaction to Trump’s 25% tariffs on steel and aluminium imports that took effect on Wednesday.

The US and China exchanged tit-for-tat tariffs in recent weeks, and more US moves are expected.