REUTERS, Beijing

Beijing yesterday increased its tariffs on US imports to 125 percent, hitting back against US President Donald Trump’s decision to hike duties on Chinese goods to 145 percent and raising the stakes in a trade war that threatens to up-end global supply chains.

Meanwhile, the turmoil unleashed by Trump’s tariffs showed few signs of easing yesterday, with markets tumbling and foreign leaders puzzling how to respond to the biggest disruption to the world trade order in decades.

A brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to his escalating trade war with China that has fuelled global recession fears.

Global stocks fell, the dollar slid and a sell-off in US government bonds picked up pace yesterday, reigniting fears of fragility in the world’s biggest bond market. Gold, a safe haven for investors in times of crisis, scaled a record high.

“Recession risk is much, much higher now than it was a couple weeks ago,” said Adam Hetts, global head of multi-asset at Janus Henderson.

US Treasury Secretary Scott Bessent tried to assuage sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations. Trump himself expressed

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