China is facing a double whammy: corrosive deflation and tariffs that threaten to block trade. Chinese workers will be the biggest casualties.

The move comes before President Trump’s planned imposition of new tariffs on small packages sent to the United States from Hong Kong and China.

Beijing’s retaliation came after the White House had raised its tariff on Chinese goods to 125 percent, on top of an existing 20 percent tax.

Punishing tariffs on Vietnam, Cambodia, Thailand and others in the region threaten their position as major manufacturing hubs for the American market.

President Trump’s policies are straining trade ties and challenging a long-held truth in China about the centrality of the U.S. market.

The city’s chief executive said a deal between the Hong Kong conglomerate CK Hutchison and BlackRock, a major American investment firm, requires “serious attention.”

Elon Musk, the company’s chief executive, is fast losing out to Chinese electric carmakers in Tesla’s second-most-important market.

In a sign it is willing to go further in responding to President Trump’s tariffs, Beijing blocked more American companies from importing goods into China.

The development marked a breakthrough for Tesla’s chief executive, Elon Musk, in a country where his company has faced increasingly tough competition.

Asian countries are among the most vulnerable to President Trump’s economic grievances. But they are also best placed to make deals to minimize their exposure.