May 10 : The trade war between the world’s two largest economies escalated further after the US imposed more than doubled tariffs on $200 billion (£153.7bn) worth of Chinese products as a pivotal round of trade talks between the countries failed to produce any amicable solution.
Tariffs on affected Chinese goods have risen to 25% from 10%, and Beijing has vowed to retaliate.
China said it “deeply regrets” the move and will have to take “necessary counter-measures.”
“China expresses deep regret over the development and will have to take necessary countermeasures,” the Ministry of Commerce said in a statement Friday afternoon.
“We hope the United States will meet us halfway, and work with us to resolve existing issues through cooperation and consultation.”
Chinese stock markets rose on Friday, with the Hang Seng index up 1% and the Shanghai Composite nearly 2% higher.
The meeting between on Thursday evening comes after President Donald Trump had announced in a tweet on Sunday promising to raise tariffs on $200 billion of Chinese goods. The president has also threatened to extend tariffs to all $540 billion in annual Chinese imports.
American and Chinese negotiators have agreed to continue their trade talks on Friday, a White House spokesman said Thursday.
U.S. President Donald Trump met with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday to discuss the negotiations to rescue a trade deal that is close to collapsing.
“This evening, Ambassador (Robert E.) Lightizer and Secretary (Steve) Mnuchin met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions,” the White House said in a statement.
Lighthizer, the chief US trade negotiator, began the talks shortly after 5 p.m. on Thursday with China’s Liu to continue negotiations aimed at a comprehensive deal.
Eonomists argued that American importers and consumers will have to borne the brunt of the duties he has imposed.It will inflict significant harm on US industry, farmers and consumers.Resultantly , the cost of living in America will increase and competitiveness of the American companies will be hit.