The raging trade war between the United States and China intensified on Monday. The US accused China of backtracking on trade commitments in talks prompting President Donald Trump to hike tariff. Trump in a tweet said that US would increase tariffs on $200 billion of goods to 25% from existing 10% that would go into effect from Friday. US further informed that there will another round of talks on Thursday. Asian stocks are trading with mixed reactions while the Chinese yuan dipped as investors try to assess the effect of the escalation.