Donald Trump has confirmed that he is ready to impose punitive new tariffs on all Chinese goods imported into the US, in what would be a massive escalation of his global trade war.

The US president said in an interview that “I’m ready to go to 500”, a reference to the $505bn of US imports from China in 2017.

The Trump administration is in the process of hitting $50bn of Chinese goods imports with levies in a move it says is spurred by unfair Chinese import barriers and the forced transfer of technology from US firms when they operate in China.

But China has matched the US tariffs, imposing levies on a similar amount of US imports, including soybeans, medical equipment and crude oil.

“I said, ‘You don’t match us – you can’t match us because we’re always going to be behind,” Mr Trump told the CNBC network.

“I’m ready to go to 500. I’m not doing this for politics, I’m doing this to do the right thing for our country. We’ve been ripped off by China for a long time,” he said.

Earlier this week the IMF warned that a global trade war could wipe up to half a trillion dollars off the global economy, or 0.5 per cent, by 2020 and that financial markets are too complacent about the risk.

Research by the Bank of England suggests that the negative impact could be still larger, reaching 2.5 per cent of global GDP over three years.

Mr Trump is also threatening the European Union, which he calls a “foe”, with more tariffs, after hitting the bloc with 25 per cent levies on steel imports, on the pretext of national security concerns.

On Thursday, EU trade commissioner Cecilia Malmstrröm warned that threatened tariffs on EU car and car part imports would be “disastrous” and that the EU would retaliate with countermeasures, just as it has on steel.

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

China has said that the US is starting “the largest trade war in economic history”.

Data from the US Census Bureau shows that the US imported $505.5bn of goods from China in 2017, while $129.9bn went the other way, leaving the US with a bilateral trade deficit of $375.6bn.

Economists argue that the current US goods trade deficit is primarily a consequence of total spending in the US exceeding total income, rather than unfair trade arrangements as Mr Trump claims.