A new round of US tariffs on Chinese goods has kicked in, the largest yet in the escalating trade war between the economic superpowers.
China retaliated by targeting $60bn of US goods with extra duties.
It says the US has started the “largest trade war in economic history”.
The latest move takes the total amount of Chinese imports hit by US tariffs since July up to $250bn. This means about half of all Chinese imports to the US are now subject to these new duties.
What is happening on Monday?
US companies importing the Chinese products in question will have to pay an additional 10% levy.
The US duties apply to almost 6,000 items, making them the biggest round of trade tariffs yet from Washington.
They affect handbags, rice and textiles, although some items such as smart watches and high chairs have been exempted.
The tax will rise to 25% from the start of 2019, unless the two countries agree a deal.
In contrast, China is placing an additional 5% in duty on US products including smaller aircraft, computers and textiles, and an extra 10% on goods such as chemicals, meat, wheat and wine.
The tariffs to date
In total, the US has imposed three rounds of tariffs on Chinese products this year, totalling $250bn worth of goods.
It placed 25% tariffs on $50bn worth of imports from China in two separate rounds.
In July, the White House increased charges on $34bn worth of Chinese products.
Then last month, the escalating trade war moved up a gear when the US brought in a 25% tax on a second wave of goods worth $16bn.
Beijing retaliated in kind.
China has imposed duties on $50bn of US products in retaliation, targeting key parts of the president’s political base, such as farmers.
Why is the US doing this?
Tariffs, in theory, will make US-made products cheaper than imported ones, so encourage consumers to buy American. The idea is they would boost local businesses and support the national economy.
But many US companies and industry groups have testified to the US Trade Representative’s Office that their businesses are being harmed.
Mr Trump‘s tariff policies are part of his protectionist trade agenda since taking office, which challenges decades of a global free trade system.
What comes next?
It is unclear how China can match the scale of US tariffs longer term.
Analysts have said China could get creative when fighting back.
It could make life more difficult for American companies in China or force its currency lower to boost exports.
China “will never go down the path of stimulating exports by devaluating its currency”, Premier Li Keqiang said last week.