The United States will raise tariffs on $200 billion worth of Chinese imports to 25 per cent from 10 per cent effective on Friday, according to a notice posted to the Federal Register on Wednesday.
The US Trade Representative's office will establish a process to seek exclusions for certain products from additional tariffs, the Federal Register notice said.
US President Donald Trump said in a tweet that he would be "very happy with over $100 billion a year in Tariffs filling US coffers."
His comments followed a Reuters report that quoted US government and private-sector sources as saying China had backtracked on almost all aspects of a draft trade agreement with the United States.
Global equities tumbled toward five-week lows as the escalating trade fight fed worries about the world economy and investors sought the safety of bonds and the Japanese yen, which hit a six-week high against the US dollar.