Donald Trump triggered a major economic war with China, which said it will “fight to the end” in retaliation at America slapping an additional 50% tariff on imports. Ahead of another day of rollercoaster stock market trading Beijing and Washington faced off in a vicious war of words at tit-for-tat trade measures.

The US president slapped a 34% tax on Chinese imports as part of what he described as "Liberation Day" that will set a minimum 10% levy on nearly all of America's trading partners. The White House has given China until today to scrap its countermeasure or face the 50% tax. In response, it accused the US of "economic bullying" saying it "will firmly safeguard its legitimate rights and interests".

There are now genuine fears the world’s two biggest economies could declare all-out war with US companies potentially facing a total rate of 104% on Chinese imports - with the 50% rate added to 20% tariffs already put in place in March and 34% announced last week.

China said the imposition of so-called “reciprocal tariffs” are “completely groundless" and “unilateral bullying practice.”

Ahead of trading experts said it could intensify a financially destructive trade war.

China's top exports to the US include electrical products and other machinery, computers, furniture, toys, vehicles and equipment.

America’s top exports to China are oilseeds and grains, as well aircraft, machinery and pharmaceuticals.

The crisis comes as Trump confirmed he was not looking to pause tariffs, a move that plunged global markets into turmoil.

At one stage yesterday false rumours circulated that he was considering a 90-pause sending stocks soaring. But after the White House corrected the falsehood, they tumbled and in just 23 minutes more than £1 trillion had been wiped off US stocks, following heavy losses in London, across Europe and Asia.

Trump said China introduced its countermeasure "despite my warning that any country that retaliates against the US by issuing additional tariffs will be immediately met with new and substantially higher tariffs".

"We have $36tn (£28tn) debt for a reason. It's now America first," Trump said.

Beijing said: "The US hegemonic move in the name of 'reciprocity' serves its selfish interests at the expense of other countries' legitimate interests and puts 'America first' over international rules. This is a typical move of unilateralism, protectionism and economic bullying."

The Chinese economy is built on manufacturing overcapacity which floods the world with cheap goods.

Ryan Hass, of the Brookings Institution, said: "Anyone expecting President Xi to come calling and seek a call with President Trump following the April 2 tariff announcement is being dangerously naive.

“Anyone advising Trump that Xi will beg for forgiveness is committing malpractice. That is not the mood or the plan in Beijing now."

The seismic market turmoil saw US investment bank JP Morgan predict a 60% chance of a global recession.

Chief executive Jamie Dimon issued a blunt warning saying: "It threatens to raise prices, drive the global economy into a downturn and weaken America’s standing in the world.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession. Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

Dimon said America’s “extraordinary standing” in the world was built on the strength of its economy, military and morals. But tariffs and Trump’s “America First” foreign policy could undermine the United States’ special position in the world.

He said: “America First is fine, as long as it doesn’t end up being America alone. If the Western world’s military and economic alliances were to fragment, America itself would inevitably weaken over time."