Donald Trump threatens further $200bn in tariffs as China trade war escalates

Donald Trump today threatened to impose tariffs on a further $200 billion worth of Chinese goods in a dramatic escalation of the trade dispute between the world’s two largest economies.

The president said the 10 per cent penalties would take effect if China “refuses to change its practices”.

Beijing hit back, accusing the US of “blackmail” and vowing to match any White House tariff hikes.

Last week, Mr Trump announced 25 per cent tariffs on $50 billion of Chinese goods in retaliation for intellectual property theft, only for China to respond with a similar tax on an array of American products.

Experts fear the dramatic new escalation will lead to a full-blown trade war between the two superpowers.

“Today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 per cent,” Mr Trump said in the surprise announcement.

“These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs it has recently announced.”

The president claimed Beijing had shown no sign of redressing a trade imbalance between the two countries that has hampered US businesses.

By retaliating, he said, China was “threatening United States companies, workers, and farmers who have done nothing wrong”.

“This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods. This is unacceptable,” he said.

“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States.”

Mr Trump’s comments came hours after Secretary of State Mike Pompeo, accused China of an “unprecedented level of larceny” of intellectual property.