Beijing raised its tariffs on US imports to 125 per cent on Friday, in retaliation against President Donald Trump’s move to hike duties on Chinese goods. The escalation has deepened a trade war that threatens to destabilise global supply chains.

The countermeasures have intensified the economic upheaval triggered by Trump’s tariffs. US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signalling a lack of confidence in America Inc.