Dhaka, April 10 -- President Donald Trump has announced a 90-day pause for countries hit by higher US tariffs but a trade war with China has escalated.

In a dramatic change of policy, just hours after levies against roughly 60 of America's trading partners kicked in, Trump said he was authorising a universal "lowered reciprocal tariff of 10 per cent" as negotiations continued.

At the same time he increased tariffs on goods from China to 125 per cent, accusing Beijing of a "lack of respect" after it retaliated by saying it would impose tariffs of 84 per cent on US imports.

This comes a week after Trump announced import taxes on all goods entering the US, in the biggest upheaval of international trade in decades, reports BBC.

His plan s...