Trump placed tariffs totaling 145% on China, leading China to retaliate with tariffs of 125% on the U.S. — essentially triggering a trade war between the world’s two largest economies with the potential to bring on a recession.

Trump pushed back on China after Beijing's foreign ministry called the administration's assertions that tariff talks are happening "fake news."

South Korea and the United States agreed to craft a trade package aimed at removing new U.S. tariffs before the pause on reciprocal tariffs is lifted in July, Seoul's delegation in Washington said after a first round of trade talks.

South Korea is counting on cooperation with the White House to reach an agreement on tariffs. The fourth-largest economy in Asia aims to finalize an agreement with Donald Trump by July 8, reports CNBC.

The country is a major exporter to the US and giants such as Samsung Electronics and automaker Hyundai stand to take a hefty hit if the White House goes ahead with its threatened 25 per cent "reciprocal" tariffs.