India, Aug. 25 -- The US-China trade war that has grabbed the headlines for over a year now is set to escalate as US President Donald Trump on Friday retaliated to Beijing's announcement of new tariffs on American goods. Trump announced raising of tariffs on Chinese goods and ordered American companies to shift their business from China. Trump's announcement came a day after China's Ministry of Commerce spokesman Gao Feng, while reiterating Chinese threat of "corresponding countermeasures", on August 22 said, "We hope the United States and China can meet each other halfway and find a solution."

On August 23, hours after Beijing said it would hike tariffs on $75 billion in US imports, Trump retorted by announcing hike in tariff on $300 bi...