North American markets plunge as concerns increase over a potential trade war between the world’s two biggest economies.

(Sunday News)

In New York, the Dow Jones average lost 1.8% or 425-points while the broader S & P 500 fell 2.1% and the tech-heavy Nasdaq slipped lower by 2.4%.

It was the largest weekly percentage decline for all three.

Fears of a trade war have intensified after China responded to President Donald Trump’s plan to place tariffs on up to $60-billion of Chinese goods by Beijing announcing plans to slap levies of up to $3-billion on American imports.

China’s commerce ministry said in a statement, ”China does not hope to be in a trade war, but is not afraid of engaging in one,” adding it hopes the U.S. will ”pull back from the brink.”

An editorial in the Communist Party Global Times, also stated China’s prepared to wag a ”people’s war,” and painted a graphic picture of the cost of such a war.

”It’s as if the U.S. is cutting flesh from China’s body while China beats the U.S. and makes it lose its front tooth.  It’s hard to say who will be more hurt,” read the editorial which closed by saying China’s capacity for pain is greater than that of the U.S.

A prominent economics writer predicts any trade war would not last longer than six months as he feels the U.S. tourism industry will still need Chinese visitors.