CHINA is raising tariffs on US goods from 84 per cent to 125 per cent with effect from tomorrow, firing the latest salvo in an escalating trade war that has raised fears of a global slowdown.

While US President Donald Trump paused import taxes for other countries this week, he raised tariffs on China, which now total 145 per cent. Beijing has denounced the rises as “economic bullying.”

Washington’s repeated jacking-up of tariffs “will become a joke in the history of the world economy,” a Chinese Finance Ministry spokesman said in a statement announcing the new tariffs today.

“However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”

The Chinese Commerce Ministry also vowed to file another lawsuit against the US tariffs with the World Trade Organisation.

“There are no winners in a tariff war,” Chinese President Xi Jinping said during a meeting with visiting Spanish Prime Minister Pedro Sanchez.

“The two sides should promote the building of a fair and reasonable global governance system, maintain world peace and security and promote common development and prosperity,” Mr Xi told Mr Sanchez at the Diaoyutai state guest house in Beijing.

Following the meeting, Mr Sanchez – taking his third trip to China in two years as his government seeks to boost investment – said Spain was in favour of “more balanced relations between the European Union and China, of finding negotiated solutions to our differences, which we have – and of greater co-operation in areas of common interest.”

He insisted: “Trade wars are not good, nobody wins.”

Mr Trump’s measures have alarmed financial markets and led some to warn that the US could be headed for a recession.

The US tariffs affect China’s supplies of goods such as soya beans, drugs and aircraft and their parts – all among the country’s major imports from the US.

Beijing, meanwhile, suspended sorghum, poultry and bonemeal imports from some US companies last week and put more export controls on rare earth minerals, which are critical for various technologies.

The United States’ top imports from China include electronic goods, industrial equipment and toys, so, with tariffs now at 145 per cent, consumers and businesses are likely to face higher prices for the those products.

White House officials hope the import taxes will bring manufacturing jobs back to the United States, but the benefit could take years to materialise, if it ever does.