China vowed not to bow to "blackmail" from the United States as a global trade war ignited by U.S. President Donald Trump's sweeping tariffs showed little sign of abating on Tuesday, even as battered stock markets steadied.

The rebuke came after Trump threatened to ratchet up tariffs on U.S. imports from the world's No. 2 economy to more than 100% on Wednesday in response to Beijing's decision to match 'reciprocal' duties Trump initially unveiled last week.

"The U.S. side's threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side's blackmailing nature," China's commerce ministry said.

"If the U.S. insists on having its way, China will fight to the end."

The European Union proposed counter-tariffs of its own to Trump's tariff onslaught that swept up dozens of countries, sent financial markets into a tailspin and fuelled expectations that the global economy may be headed for recession.

Stock markets found a firmer footing after a gut-wrenching few days for investors which prompted some business leaders, including those close to Trump, to urge the president to reverse course.

Japan's Nikkei index rose 6% on Tuesday, rebounding from a 1-1/2-year low hit in the previous session, after Trump and Japanese Prime Minister Shigeru Ishiba agreed to open trade talks.

U.S. Secretary of State Marco Rubio also spoke to his Pakistani counterpart about tariffs and future trade relations.

Chinese blue chips (.CSI000300), opens new tab climbed 1%, recouping a fraction of the more than 7% slide on Monday. Hong Kong's Hang Seng Index (.HSI), jumped around 2% after suffering the worst day since 1997 as a result of what the trading hub's leader called "ruthless" tariffs.

U.S. stock futures also pointed higher after slumping to the lowest level in more than a year.