Donald Trump has imposed a 125% tariff on China in response to the country's retaliation.

The Unconventional Economist, Leith van Onselen, told Bill McDonald on 4BC Mornings, "It started off with a month ago tariff of I think it was 10% or something. Then it went to it went to 30 odd and then he jacked it up another 50."

"And it's in response because China keeps retaliating."

"But the problem with it is that this is really problematic for Australia because one-third of Australia's exports go to China. So China is our biggest export market by far," Mr van Onselen continued.

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