Donald Trump kicked off the process of imposing tariffs on a further $200bn of imports from China as the trade war between the two economic powers escalated. 

The president told the US trade representative to begin preparations for levies of 10 per cent on the products, the administration said. The announcement triggered declines in financial markets as traders reacted to the worsening relations between the two nations, and prompted criticism from within the president’s own party. 

The Trump administration’s move comes after Beijing accused America of “trade bullying” and slapped tariffs on $34bn of US exports. China’s action last week came “without any international legal basis or justification”, said US Trade Representative Robert Lighthizer in a statement on Tuesday evening.