China will soon impose an additional 34 per cent tariffs on all US imports in a retaliatory move that will cause prices to skyrocket for American consumers.

Beijing announced the measure today, the most serious escalation in a trade war with Trump that has fed fears of a recession and triggered a global stock market rout.

The new tariff, which comes into effect on April 10, matches the rate of the ‘reciprocal’ 34 per cent levy imposed by Donald Trump this week. The levies are in addition to the existing tariffs already imposed on US goods.

US exports to China totalled $143.5 billion last year, according to Office of the US Trade Representative data. Oilseeds and grains, including soybeans, machinery and aerospace products were America’s top exports to the country.

The US imported $438.9 billion worth of goods from China last year, with top imports including electrical and electronic equipment, machinery, toys, and plastics.

Beijing’s commerce ministry also said it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.

China added 11 entities to the ‘unreliable entity’ list, which allows Beijing to take punitive actions against foreign entities. The country also filed a lawsuit with the World Trade Organization (WTO) over sweeping US tariffs imposed on its exports. 

It comes after Trump ignited a potentially ruinous global trade war this week by imposing 10 per cent levies on imports from around the world and harsh extra duties on key trading partners.

Consumers may find their favourite products will soon become much pricier due to the tariffs. Analysts warn that iPhones, which are still made in China, could be among the products hardest hit – with possible price increases of up to 40 per cent.

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