China’s move to impose retaliatory tariffs on most goods imported from the U.S. has taken effect, even as the standoff between Washington and Beijing takes a turn for the worst.
Tariffs on $60 billion worth of imports from the United States took effect on Saturday, June 1 as had been announced by Chinese authorities on May 13. Incidentally, China imposed its own retaliatory tariffs just three days after the U.S. hit $200 billion worth of Chinese imports with a 25% tariff, up from 10%.
Beijing and Washington have continued to escalate the trade war, with the two largest economies in the world not scheduled for trade talks since May 10 when negotiators from both countries hit a deadlock.
China’s new tariffs are in the shape of an additional 20% or 25% hike targeting over half of U.S. imports. The United States exports 5,140 different products to China, which Beijing had previously targeted with 5% or 10% tariff rates.
The new tariff hikes are coming into effect on the back of heightened rhetoric from both sides, and consumers are seemingly already feeling the brunt of the rate hikes.
U.S. president Donald Trump recently accused China of not being intent on a trade deal, noting that Beijing broke the possibility of ending the dispute when it reneged on earlier commitments.
China has refuted Trump’s claims and said that Washington wasn’t being “honest” about its intentions concerning a potential trade deal.
In recent weeks, Beijing officials have upped the stakes by saying that China wasn’t just going to cave to demands from the Trump administration.
The U.S. government then added Chinese telecom Huawei Technologies Co Ltd and several other firms onto an “Entity List.” That move to blacklist the tech company also came with a ban that meant the Chinese firm could only be allowed to do business with U.S. companies after receiving approval from the