As widely expected, US President Donald Trump has slapped another $200 billion worth of tariffs on Chinese goods which has caused a lift in the US dollar today against the major currencies and with China threatening to retaliate, the trade wars look set to increase which is only good news for the greenback as investors seek out safe haven currencies.

Chinese Foreign Ministry spokesman Geng Shuang noted that the only way to solve trade disputes was by negotiations and that Donald Trump’s latest move were reckless and in the long run will hurt both countries.

“China has always emphasized that the only correct way to resolve the China-U.S. trade issue is via talks and consultations held on an equal, sincere and mutually respectful basis. But at this time, everything the United States does not give the impression of sincerity or goodwill,” he added. Mr Shuang said.

In true Trump style, the US president brushed off the minister’s words and threatened further sanctions if China decides to retaliate with some of their own which would cover then cover all goods that are imported into the US from China and hit the big companies such as Apple who have production facilities in China.

In a sign that the trade tensions between the 2 countries is starting to spill over to the rest of the world, members from the EU chamber of commerce note that the tariffs were already starting to damage global trade and this is only set to get worse.

“Tensions in the global economic system have manifested themselves in the U.S.-China trade war, which is now seriously disrupting global supply chains,” the European Union Chamber of Commerce in China said in a statement on Tuesday.