The US has hit China with its largest round of tariffs yet in an escalating trade war, as planned talks between the two nations have reportedly been cancelled.

The Chinese government accused Donald Trump’s administration of "trade bullying practices" and "intimidating other countries through economic measures" after the US levied tariffs of 10 per cent on $200bn of Chinese products.

That spurred Chinese President Xi Jinping’s government to impose nearly $60bn in taxes on over 5,000 US imports, as well as reportedly axe trade talks that were previously planned between both nations.

Envoys for the two counties last met on 22 August in Washington but reported no progress.

Shares fell in Europe and Asia with the news. The latest round of tariffs arrived after $50bn worth were previously applied by both China and the US on each other’s products.

The latest Chinese tax increases would levy 10 per cent against products like coffee and liquefied natural gas, with other goods like frozen vegetables, chemical products and cocoa powder facing a 5 per cent levy.

China said the US spurred the "largest trade war in economic history" under Mr Trump, Xinhua news agency reported, as the US president threatened tariffs on all $505bn of Chinese imports.

"I’m ready to go to 500," Mr Trump told CNBC in July. "I'm not doing this for politics — I’m doing this to do the right thing for our country … We have been ripped off by China for a long time."

These products may become more costly in the trade war Show all 9 1 /9 These products may become more costly in the trade war These products may become more costly in the trade war Orange Juice, which Florida is known for, may soon be subject to import tariffs Getty Images These products may become more costly in the trade war The EU lists 'footwear with outer soles of rubber or of plastics and uppers of plastics' amongst the goods that may soon be subject to import tariffs Getty Images These products may become more costly in the trade war Cosmetic products, such as US brands Maybelline, MAC and Avon, may soon be subject to import tariffs Getty Images for Rebekka Ruetz These products may become more costly in the trade war Jeans, the all-American trousers, are on the EU's list of goods that may be subject to import tariffs Getty Images These products may become more costly in the trade war Bourbon whiskey is on the EU's list of over 100 US products that may be subject to import tariffs Getty These products may become more costly in the trade war US peanut butter products are on the EU's list of goods that may soon be subject to tariffs Getty Images These products may become more costly in the trade war US motorcycles, such as the Harley-Davidson, may soon be subject to import tariffs Getty Images These products may become more costly in the trade war Cranberry products, a major US crop export, may soon become more expensive Getty Images These products may become more costly in the trade war All tobacco products are on the EU's list of US goods that may be subject to import tarifs AFP/Getty Images

Confronting China over its trade practices was a major campaign promise for Mr Trump. But the president has faced scrutiny over his handling of the tit-for-tat tariff increases his administration started, when US Customs and Border Protection began collecting a 25 per cent tariff on $34bn of Chinese products.

The European Union has threatened to take action against the US if it were to levy tariffs against cars made internationally — a move the president has warned he would take while in office.

With no settlement in sight, forecasters say the conflict between the two biggest economies could trim global growth through 2020.

On Monday, the ratings agency Fitch cut its forecasts for next year's Chinese and global economic growth by 0.1 percentage points to 6.1 per cent and 3.1 per cent, respectively.

“The trade war is now a reality,” said Fitch's chief economist, Brian Coulton, in a report. “The downside risks to our global growth forecasts have also increased.”