- Tag results for US China trade war
An official said he is optimistic there is a positive way forward with China on trade, but that Trump has made clear US resolve to stand up to trade practices that hurt the US economy.
The move is in contravention of a sweeping US sanctions bill signed in 2017.
The global lender is still assessing the impact of the duties imposed so far but the economic costs 'will quickly add up,' IMF spokesman Gerry Rice told reporters.
That would mean no easing of tensions between the world's top two economies for many years after President Donald Trump has left office, even if he serves a second term, the CNN reported.
The increases are in response to the announcing it will impose tariffs on $200 billion worth of Chinese-made goods starting next week.
The domestic currency after remaining range-bound was quoting lower by 27 paise at 72.78 (intra-day) against the US dollar in late afternoon trade.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.15 per cent in early trade but Japan's Nikkei bucked the trend to gain 0.4 per cent.
The growing trade conflict between the world's two largest economies has long unnerved investors who fear an escalation could eventually whack global growth .
The Washington Post and Wall Street Journal said US President Trump had decided to impose 10 percent levies on USD 200 billion of Chinese imports and could make an announcement in the coming days.
The fresh tariffs are aimed at putting pressure on Beijing ahead of tough negotiations on its demand for technology transfer from US companies.
China considers that "no substantive effort and progress has been made" by the US to fulfill its implementation obligation.
Chinese factories making everything from bikes to tyres, plastics and textiles are moving assembly lines abroad to skirt higher customs taxes on their exports to the United States and elsewhere.
The company's US-made hardware products have taken it to become a USD 1 trillion company but those products are built in China which, in turn, creates thousands of jobs.
Trade disputes between the United States and other major economies including China and the European Union are expected to hurt oil demand if they are not settled soon.
Trump's refusal to direct criticism at North Korean leader and instead blame other parties for a lack of progress comes despite reports the US received a belligerent letter from Pyongyang.