China hits back with 125pc tariffs on US goods but to ignore further hikes

China said on Friday it would raise tariffs on US goods to 125 per cent but would ignore further levies by President Donald Trump because it no longer makes economic sense for importers to buy from America.

After a week of market mayhem as the world’s two largest economies took turns to put up trade barriers, Beijing dismissed Trump’s mounting brinkmanship as a “joke” and a “numbers game”.

China accused Trump of unleashing turbulence in the market with the sweeping tariffs that has hit the world...