US-China full blown tariff war risks 'drying up' trade between world's largest economies

US tariffs on China hiked to 125%

Investors worry the latest tariff spat between US and China could lead to a de-coupling of the world's two largest economies, with neither party willing to back down from retaliation.

To make matters even worse, US President Donald Trump unveiled a 90-day pause on most levies on Wednesday (9 April) with the exception of China, which the US was taxing at 104% but then increased it to 125%. Editor's note: Since this article was published China increases additional tariffs on US imports to 125% due to come into effect tomorrow (12 April). "It is no secret that the US and China are not friends, and Trump's actions have made the relationship go from bad to worse," Dan Coatsworth, investment analyst at AJ Bell, said. "China would never dream of letting Trump have the fin...