China has again vowed to "fight to the end" in an escalating trade war with the US as it announced it would raise tariffs on American goods to 84 per cent from tomorrow.
European Union member states also reacted overnight, approving retaliatory tariffs on $US23 billion ($38 billion) in goods in response to Trump's 25 per cent tariffs on imported steel and aluminium.
The escalations came after the tariff introduction hit markets in Australia and around the world and Treasurer Jim Chalmers had an emergency meeting with Reserve Bank of Australia governor Michele Bullock.
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