Chinese exporters have responded to Donald Trump’s heavy tariffs on the nation by raising prices, diverting goods to other countries and cancelling shipments.

The ongoing dispute between the world’s superpowers shows no signs of abating, with the US President announcing on Wednesday that Beijing would be subjected to 104% levies on goods into the US, sparking further fears of an imminent trade war between the countries home to the world's biggest economies. The response from Chinese businesses has been immediate, with sellers on e-commerce platforms raising prices by as much as 70% or pulling their goods from the sites altogether. Wang Xin, president of the Shenzhen Cross-Border E-Commerce Association said: "Chinese sellers will not be able to take on the extra [financial] burden from the US tariff hikes. We are going through fire and water.

It is believed that some businesses might look to send their products to third countries to be finished in the hope that they can be shipped to the US from there and avoid sanctions.

The Global Economic Outlook report, released by Allianz Trade, says that "businesses are frontloading imports, relocating supply chains, and bracing for weaker investment and rising insolvencies as uncertainty and cost pressures mount."

China has accused the US of acting "selfishly" and has warned Washington that it is not willing to back down in the dispute.

On Wednesday, Donald Trump appeared to back down by pausing tariffs on most countries, with China the most obvious exception.

The World Trade Organisation (WTO) has warned of the global impact an ongoing dispute will have.

Dr. Ngozi Okonjo-Iweala, Director-General of the WTO, said: "This tit-for-tat approach between the world’s two largest economies, which together account for roughly 3% of global trade, carries wider implications that could severely damage the global economic outlook."

The ongoing economic measures could have a wider effect on the relationship of United States’ long-term allies with China.

Senior officials from China’s international department have been touring European capitals in an attempt to portray the country as a reliable partner, as doubts persist over the state of many countries’ relationship with Washington.

One video released by the Chinese ministry of foreign affairs says the world has two options as it attempts to differentiate itself from the chaos of the US administration.

In another, the ministry released a video of Ronald Reagan as he lamented tariffs and their devastating impacts.