The US has scrapped a reciprocal tax deal with Hong Kong for shipping as part of the President Donald Trump's retaliation over China's imposition of tough new security laws on the territory.

The US State Department said it had notified Hong Kong it has suspended or terminated three bilateral agreements with the city, Reuters reported.

In a statement, the US said: "These agreements covered the surrender of fugitive offenders, the transfer of sentenced persons, and reciprocal tax exemptions on income derived from the international operation of ships.”