These will apply to almost 6,000 items, marking the biggest round of us tariffs so far.

Handbags, rice and textiles will be included, but some items expected to be targeted such as smart watches and high chairs have been excluded.

The Chinese commerce ministry said it had no choice but to retaliate but is yet to detail what action it will take.

The US taxes will take effect from 24 September, starting at 10% and increasing to 25% from the start of next year unless the two countries agree a deal.

US President Donald Trump said the latest round of tariffs was in response to china's "unfair trade practices".

Trump also warned that if china retaliated then the US would "immediately pursue phase three" and impose further tariffs on another $267bn worth of Chinese products.

Such a move would mean almost all of china's exports to the US would be subject to new duties.

After opening lower, the shanghai stock market ended the day 1.8% higher, while Tokyo was up 1.4% and Hong Kong gained 0.6%.