THE Trump administration has announced a 25% tariff on $50 billion worth of Chinese imports, escalating a trade dispute between the world’s two largest economies.

President Donald Trump has vowed to clamp down on what he calls China’s unfair trade practices.

China has said that it will retaliate with $50bn in tariffs in response, rattling financial markets.

It comes in the aftermath of Trump’s nuclear summit with North Korean leader Kim Jong Un and his push for China to maintain economic pressure on the North.

Trump has already slapped tariffs on steel and aluminium imports from Canada, Mexico, Europe and Japan, drawing a rebuke from US allies.

In a statement, the president said: “The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices.”

The Office of the US Trade Representative said the tariffs will start to be collected on July 6.

Chinese foreign ministry spokesman Geng Shuang said that China’s response would be immediate and that Beijing would “take necessary measures to defend our legitimate rights and interests”.

Beijing earlier drew up a list of $50 billion in US products that would face retaliatory tariffs, including beef and soybeans, a shot at Mr Trump’s supporters in rural America.