US President Donald Trump is preparing to announce new tariffs on imports from China worth $200bn (£153bn), according to reports.
Tariffs of around 10 per cent will be imposed on electronic goods such as internet technology products, printed circuit boards, and other electronics, the Wall Street Journal reported, citing White House sources. A decision could be announced as soon as tomorrow.
Trump's administration has targeted China's large trade surplus with the US, in the belief that reducing the surplus will keep manufacturing jobs within American borders.
The administration has also raised issues with the forced transfer of intellectual property. Foreign firms in China must currently set up a joint venture rather than operating alone.
The imposition of more tariffs could lead to the cancellation of further trade talks later this month, according to a separate Wall Street Journal report citing Chinese government sources.
US treasury secretary Steven Mnuchin had reportedly proposed a meeting around 20 September in a bid to restart trade talks, although that was undermined by the President.
Trump on Thursday tweeted that the US "will soon be taking in billions in tariffs" on Chinese products. He has previously exhorted American companies such as Apple and Ford to manufacture their goods in the US.
However, economists almost universally say that the imposition of tariffs will damage the US economy. Tariffs are usually thought to be borne for the most part by consumers through higher costs.