China has hit back at the US by sharply raising tariffs on American goods to 84 per cent.

This comes just days after President Donald Trump slapped a 104 per cent tariff on Chinese imports, shaking global markets and pushing up UK borrowing costs.

China’s Ministry of Finance said it will add an extra 34 per cent tariff on US goods starting 10 April, on top of the taxes already in place. The move is a direct response to the US raising tariffs and marks a major escalation in the trade row.

Officials have also introduced new export controls on rare-earth minerals, which are crucial for technology and defence products.

On top of that, more than 20 US companies have been blacklisted, adding even more pressure to already tense relations between the two countries.