After vowing over the weekend to "never surrender to external pressure", Beijing has defied President Trump's demands that it not resort to retaliatory tariffs and announced plans to slap new levies on $60 billion in US goods.

• CHINA SAYS TO RAISE TARIFFS ON SOME U.S. GOODS FROM JUNE 1
• CHINA SAYS TO RAISE TARIFFS ON $60B OF U.S. GOODS
• CHINA SAYS TO RAISE TARIFFS ON 2493 U.S. GOODS TO 25%
• CHINA MAY STOP PURCHASING US AGRICULTURAL PRODUCTS:GLOBAL TIMES
• CHINA MAY REDUCE BOEING ORDERS: GLOBAL TIMES
• CHINA ADDITIONAL TARIFFS DO NOT INCLUDE U.S. CRUDE OIL
• CHINA RAISES TARIFF ON U.S. LNG TO 25% EFFECTIVE JUNE 1

Here's a breakdown of how China will impose tariffs on 2,493 US goods. The new rates will take effect at the beginning of next month.

• 1,078 items to be subject to 20% of tariffs
• 974 items subject to 10% of tariffs
• 595 items continue to be levied at 5% tariffs

In further bad news for American farmers, China might stop purchasing agricultural products from the US, reduce its orders for Boeing planes and restrict service trade. There has also been a talk that the PBOC could start dumping Treasurys (which would, in addition to pushing US rates higher, could also have the effect of strengthening the yuan).

China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.

— Hu Xijin 胡锡进 (@HuXijin_GT) May 13, 2019

Stocks have now erased the entirety of the "constructive talks" ramp from Friday afternoon.

The yuan, which has been incredibly sensitive to trade-deal news, also crashed on the news.

Gold caught a bid on the trade war escalation.

Reacting to China's threat to dump some Treasuries, 30-year yields headed higher.

And just like that, with no new deal talks planned and the US preparing to unveil its own next steps to impose tariffs on all Chinese goods entering the American market, it appears the trade war between the US and China is finally about to go nuclear.

At least that's how it's looking right now: We imagine it's only a matter of time before the US announces the timing of the next round of talks, prompting algos to send the market 500 points higher in a frenzy of buying.