US President Trump hits China with $250 billion of new tariffs as trade war escalates

US President Donald Trump on Friday announced to raise existing and planned tariffs on Chinese products in retaliation for Beijing's announcement earlier in the day of new duties on American goods.

"Starting on October 1st, the 250 BILLION (US) DOLLARS of goods and products from China, currently being taxed at 25 percent, will be taxed at 30 percent,” Trump said in a statement to the White House press corp.

“Additionally, the remaining 300 BILLION (US) DOLLARS of goods and products from China, that was being taxed from September 1st at 10 percent, will now be taxed at 15 per cent. Thank you for your attention to this matter!” said the US president in his unusual statement, portions of which were in capital letters.

In his statement, which was mainly against China, Trump also issued a warning to other countries as well. "For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more,” he said.

“Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight. Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer,” Trump said.

“As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very unfair Trading Relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!),” he said.

The Trump's announcement came after China on Friday said it will impose additional 10 percent tariffs on $75 billion worth of US exports in retaliation to President Donald Trump's threat to impose new tariffs on $300 billion worth of Chinese imports as the trade war between the top two economies continues to intensify.

Since the commencement of trade war last year China and the US have so far hit each other with punitive tariffs covering billions of dollars in two-way trade.

Trump's statement came hours before he was scheduled to leave for France to attend the G7 Summit. Other members of grouping are Canada, France, Germany, Italy, Japan, and the United Kingdom.

Prime Minister Narendra Modi is attending the G7 summit as a special guest at the invitation of the French President Emanuel Macron. Trump and Modi are scheduled to hold meetings on the sidelines of the G-7 summit.

“They (Modi and Trump) will look for solutions on the trade front. The US is looking to India to reduce tariffs and open its markets,” a senior administration official told reporters on the eve of his departure.