US President Donald Trump has escalated the possibility of a trade war with China by approving tariffs on USD 50 billion worth of Chinese goods.

The decision came after a 90-minute meeting with Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer, along with representatives of National Security Council.

Reacting to the decision, Beijing promised to retaliate. "If the US side adopts unilateral protectionist measures and damages China's interests, we will immediately react and take necessary measures to firmly safeguard our legitimate rights and interests," said Geng Shuang, China's Foreign Ministry spokesman.

China, in the past, had said that it would respond to American tariffs on USD 50 billion worth of Chinese products with counter-tariffs on American goods.

A formal announcement is expected to be made today by the US Trade Representatives. The Federal Register is likely to be notified in the coming weeks.