WASHINGTON: US President Donald Trump has announced fresh 10% tariffs on another Chinese products worth Rs $300 billion effective from September 1.

The move is the latest salvo in an escalating trade war between the two countries after the latest round of bilateral talks showed little sign of a breakthrough.

On Wall Street, the Dow Jones share index fell sharply, tumbling about 1%, with the announcement. Investors reacted to the news with dismay.

Trump tweeted that the tariffs applied to “the remaining 300 Billion Dollars of goods and products coming from China into our Country”.

In later remarks, the president told reporters the 10% tariff was a short-term measure and that tariffs could be lifted to more than 25%.

The new levy is likely to affect a wide range of goods, from smartphones to children’s clothing.