China hits US with fresh levies and vows it will ‘fight to the end’ in Trump trade war - China has lifted tariffs on US goods to 125 per cent and said it would ignore any further US levy increases in

The US threatened Mexico with sanctions and tariffs over a water dispute, accusing the latter of violating an 81-year-old treaty between the countries.

Relief over Trump's move to pull back on some of his heftiest global tariffs proved somewhat short-lived. Investors were unsettled by the escalating trade battle with China, the second-biggest provider of U.S. imports, while the president's 90-day pause on hefty levies elsewhere meant the tariff cloud was not going away anytime soon.

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China raised tariffs on U.S. goods to 125% after Trump hiked duties to 145%, intensifying a trade war. Follow Newsweek's live blog.

Xi Jinping said that the trade wars sparked between China and US will only leave the latter in self isolation.

As Donald Trump’s reciprocal tariffs on some of America’s biggest global trading partners come into effect, including a huge 104 percent levy on imported Chinese goods, the president has insisted his economic strategy is a “war with the world” in pursuit of fairer trading conditions for the United States.

While Trump's 90-day pause on his levies for most countries helped global markets, the tiff between China and the US over the reciprocal tariffs continued to escalate through the day.