US tariff hike on $200bn Chinese goods takes effect; Beijing to retaliate

SINGAPORE (ICIS)–The US effectively hiked tariffs on $200bn worth of Chinese goods to 25% at midday, with China vowing to retaliate, escalating the trade war between the two economic giants now on its 10th month.

Chinese President Xi Jinping (R) and US counterpart Donald Trump in Buenos Aires, Argentina on 1 December 2018. (Photo by Xinhua/REX/Shutterstock)

US’ tariffs were raised from 10% starting 12:01 hours Singapore time (04:01 GMT) on Friday, in the midst of high-level negotiations for a trade deal in Washington.

“China deeply regrets that it will have to take necessary countermeasures,” said a spokesperson from China’s Ministry of Commerce in a statement posted on its website in Chinese.

The 11th round of the China-US high level economic and trade consultations are currently underway, the ministry said.

US trade negotiator Robert Lighthizer and US Treasury Secretary Steven Mnuchin had a working dinner with China’s vice premier Liu He late on Thursday, but there was no firm outcome to that meeting.

“It is hoped that the US and China will work together and resolve existing problems through cooperation and consultation,” the Chinese ministry spokesperson said.

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