Trump Proposes New US$100bn China Tariffs

President Donald Trump instructed the US trade representative to consider slapping an additional US$100 billion in tariffs on Chinese goods on Thursday in a dramatic escalation of the trade dispute between the two countries.

Trump's surprise move came a day after Beijing announced plans to tax US$50 billion in American products, including soybeans and small aircraft, in response to a US move this week to slap tariffs on US$50 billion in Chinese imports.

And it intensified what was already shaping up to be the biggest trade battle since World War II. Global financial markets had fallen sharply as the world's two biggest economies squared off over Beijing's aggressive trade tactics. But they had calmed down on Wednesday and Thursday on hopes the US and China would find a diplomatic solution.

Instead, the White House announced after the markets closed on Thursday that Trump had instructed the Office of the United States Trade Representative to consider whether US$100 billion of additional tariffs would be appropriate and, if so, to identify which products they should apply to. He's also instructed his secretary of agriculture "to implement a plan to protect our farmers and agricultural interests."

"China's illicit trade practices - ignored for years by Washington - have destroyed thousands of American factories and millions of American jobs," Trump said in a statement announcing the decision. (AP)