US President Donald Trump yesterday announced stiff tariffs of 25 per cent targeting $50 billion in Chinese imports, saying the "very unfair" situation is "no longer sustainable", raising the possibility of a trade war between the world's two largest economies. Making good on a pledge to punish the alleged theft of American intellectual property, Trump warned in a statement of "additional tariffs" if China hits back with tit-for-tat duties on American goods and services exports.

At least initially, though, the new tariffs will not cover the full $50 billion in trade that the White House had threatened in March. US Trade Representative Robert Lighthizer said Friday the United States would begin collecting duties on 818 Chinese imports valued at $34 billion as of July 6. A second tranche of 284 goods valued at $16 billion — which would bring the total to $50 billion — will undergo an additional process of review, according to the trade representative's office.