A trade war among the world’s two major economies is escalating again, after the United States hit China with higher tariffs and Beijing declared to hit back.
According to China’s Ministry of Commerce, the Trump elevated tariffs on $200 billion worth of Chinese imports from 10% to 25% at 12:01 a.m. ET on Friday.
After the tariff went into result Beijing reacted spontaneously.
“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.”
Responses in Asia markets were miscellaneous.
Having started the day in positive ground, Hong Kong’s Hang Seng Index was up around 1%, Shanghai Composite Index rose more than 2% and Japan’s Nikkei Index fell nearly 1% in afternoon trading.
IPhones, toys and shoes could be more expensive after Trump’s new tariff threat
Under the recent situations, Liu said he “hopes to engage in rational and candid exchanges with the US side,” Chinese state media outlet Xinhua reported.
Liu added that China believes raising tariffs is not a solution to the problems and is harmful to China, to the United States and to the whole world.
Importers received just five days’ notice about the unexpected escalation in penalties. Trump’s shock move to rise tariffs alarmed US businesses.
“The tariff increase inflicts significant harm on US industry, farmers and consumers,” said Jacob Parker.
According to a notice from the US Federal Register, the higher tariffs will be functional to relevant US-bound goods exported from China on or after Friday.