China Escalates US Trade Fight With Curbs on Shipping

China sanctioned the US units of a South Korean shipping giant and threatened further retaliatory measures on the industry, the latest in a series of tit-for-tat moves as Beijing and Washington jockey for leverage before expected trade talks.

The sanctions, which prohibit people or organizations in China from transacting with US units of Hanwha Ocean Co., helped fuel a slump in global equities on Tuesday as traders dialed back hopes for an easing of tensions between the world’s largest economies.