CHINA ramped up the trade war with the US yesterday with the announcement of increased tariffs on £46billion worth of American goods.
The move, in retaliation for the latest hike in US duty on Chinese imports, sent financial markets into a tailspin.
China’s finance ministry said the tariffs of between five and 35 per cent would apply to hundreds of US products, including batteries, spinach and coffee. They will take effect on June 1.
The move follows Donald Trump’s increase on Friday of duties on £153billion of Chinese imports from ten per cent to 25 per cent.
Yesterday, Mr Trump (pictured) warned Chinese president Xi Jinping that China ‘will be hurt very badly’ if it doesn’t agree to a trade deal. He tweeted China ‘had a great deal, almost completed, & you backed out!’