President Trump increases tariffs to 30% on $250 billion worth of Chinese goods

"China should not have imposed tariffs on $75 billion of U.S. goods. Starting October 1, the $250 billion of Chinese goods currently being taxed at 25% will be taxed at 30%. The remaining $300 billion of goods, which were scheduled to be taxed starting September 1 at 10%, will now be taxed at 15%," Trump announced on Twitter on August 24.

Trump's move comes after China announced it would impose a 5-10% tariffwith $75 billion in US goods from September 1 and December 15, emphasizing that they "were forced to act in response to US measures".

US President Trump and Chinese President Xi Jinping agreed to a "trade truce" during a meeting on the sidelines of the G20 Summit in Osaka, Japan, in late June. However, tensions escalated again when Trump announced plans to impose tariffs on $300 billion worth of Chinese goods from September 1 and December 15, prompting Beijing to respond by stopping purchases of US agricultural products.

The International Monetary Fund (IMF) has warned that the trade war is slowing global growth and there are growing signs that the US could be heading into recession. However, Trump has maintained a tough stance on China, insisting that he is "destined" to fight China.

Bilateral trade talks will resume next month in Washington. However, observers say the two sides are unlikely to make a breakthrough as tensions continue to escalate.