China is preparing countermeasures against fresh U.S. import tariffs set to take effect on Tuesday, China's state-controlled Global Times reported, raising the prospect of an all-out trade war between the world's top two economies.

President Donald Trump said Thursday tariffs of 25% on Mexican and Canadian goods are set to take effect on March 4, while also threatening to impose an additional 10% on Chinese imports on the same date.

The U.S. next week will impose an additional 10% tariff on imports from China over its role in the fentanyl trade, the president said.