White House criticises China for retaliatory tariff hikes amid fears of escalating trade war

'We will certainly take countermeasures of the same proportion and of the same scale, same intensity,' says Beijing's ambassador to the US

Donald Trump has imposed tariffs on aluminium and steel (Getty)

The White House has criticised China for imposing $3bn (£2.1bn) worth of tariffs on US imports in retaliation against Donald Trump’s tariffs on steel and aluminium.

Amid fears of a trade war between the two superpowers, Beijing put a duty of up to 25 per cent on 128 American imports. It said the move was needed to safeguard its interests.

But the White House criticised the move, saying it was “unfair trading”.

Spokeswoman Lindsay Walters said: "Instead of targeting fairly traded US exports, China needs to stop its unfair trading practices which are harming US national security and distorting global markets. China's subsidisation and continued overcapacity is the root cause of the steel crises."

China's ambassador to the US said the threat of a trade war between the two countries was large. Cui Tiankai said his country would continue to respond with the same intensity.

“If they do [impose new tariffs] we will certainly take countermeasures of the same proportion and of the same scale, same intensity,” Mr Cui told The South China Morning Post.

US stocks fell sharply and Asia traded generally lower after the new tariffs were announced.

The US initially took two major steps on tariffs which triggered tension with China. First on aluminium and steel, then on intellectual property.

The White House cited national security laws to impose the new global steel and aluminium tariffs on 8 March. It said they were needed to protect US producers.

However, a number of major US allies including Canada, Mexico and the European Union are expected to receive exemptions from the new tariffs.