China is set to impose a tariff of up to 10% on $75bn of goods imported from the US in a move that will increase tensions between the two superpowers.

Agricultural goods, crude oil and small aircraft are among the products being targeted.

The tariff is a retaliation after President Trump revealed plans for a 10% tax on $300bn of goods from China.

The new tariffs will range between 5% and 10% and will apply to more than 5,000 goods coming from the US.

Beijing will also revive a 25% tariff on US car imports that it lifted earlier in 2019 in a goodwill gesture as the two countries tried to negotiate a trade agreement.

The decision – announced shortly before Federal Reserve chairman Jerome Powell gives a closely-watched speech – hit share prices in Europe.

On 1 August, President Trump unveiled a 10% tariff on $300bn of Chinese goods, blaming China for not following through on promises to buy more American agricultural products.

That tariff was expected to be introduced on 1 September, but less than two weeks later Mr Trump delayed that date to 15 December over concerns it might hit Christmas shoppers.

China said it planned to impose its new tariffs in two stages on 1 September and 15 December.