The US imposed 25 percent tariffs on $34 billion of Chinese products earlier this month, with plans to add another $16 billion  of imports on Tuesday.

Trump initially threatened to levy 10 percent on an additional $200 billion but that figure may now rise to 25 percent, sources told the Washington Post and Bloomberg.

It would represent a ramping up of pressure over Washington’s trade standoff with Beijing.

Markets were however steady on Tuesday, given a boost by hopes for new negotiations.

In 2017, the United States had a $376 billion trade deficit with China, which it is keen to cut.

Trump recently threatened to slap punitive tariffs on all Chinese imports, which accounted for more than $500 billion last year. DM