In this Wednesday, May 8, 2019, photo, a barge pushes a container ship to the dockyard in Qingdao in eastern China’s Shandong province. President Donald Trump’s latest tariff hikes on Chinese goods took effect Friday and Beijing said it would retaliate, escalating tensions in fight over China’s technology ambitions and other trade strains. (Chinatopix via AP)

US hikes tariffs on Chinese goods, Beijing vows retaliation

Beijing retaliated for previous tariff hikes by raising duties on $110 billion of American imports

President Donald Trump’s latest tariff hike on Chinese goods took effect Friday and Beijing said it would retaliate, escalating a battle over China’s technology ambitions and other trade strains.

The Trump administration raised duties on $200 billion of Chinese imports from 10% to 25%. China’s Commerce Ministry said would take “necessary countermeasures” but gave no details.

The increase went ahead after American and Chinese negotiators began more talks in Washington aimed at ending a dispute that has disrupted billions of dollars in trade and shaken global financial markets.

American officials accuse Beijing of backtracking on commitments made in earlier rounds of negotiations.

The talks were due to resume Friday after wrapping up with no word on progress.

“China deeply regrets that it will have to take necessary countermeasures,” said a Commerce Ministry statement.

Shares in Asia were mixed Friday amid renewed investor jitters about the possible impact of the trade battle on global economic growth.

The latest increase extends 25% U.S. duties to a total of $250 billion of Chinese imports. Trump said Sunday he might extend penalties to all Chinese goods shipped to the United States.

READ MORE: China holds appeal hearing for B.C. man sentenced to death

Beijing retaliated for previous tariff hikes by raising duties on $110 billion of American imports. But regulators are running out of U.S. goods for penalties due to the lopsided trade balance.

Chinese officials have targeted operations of American companies in China by slowing customs clearance for their goods and stepping up regulatory scrutiny that can hamper operations.

The higher U.S. import taxes don’t apply to Chinese goods shipped before Friday. By sea, shipments across the Pacific take about three weeks, which gives negotiators a few more days to reach a settlement before importers may have to pay the increased charges.

The negotiators met Thursday evening. Then, after briefing Trump on the negotiations, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin dined with the leader of the Chinese delegation, Vice Premier Liu He.

Liu, speaking to Chinese state TV on his arrival in Washington, said he “came with sincerity.” He appealed to Washington to avoid more tariff hikes, saying they are “not a solution” and would harm the world.

“We should not hurt innocent people,” Liu told CCTV.

At the White House, Trump said he received “a beautiful letter” from Chinese President Xi Jinping and would “probably speak to him by phone.”

The two countries are sparring over U.S. allegations that China steals technology and pressures American companies into handing over trade secrets, part of an aggressive campaign to turn Chinese companies into world leaders in robotics, electric cars and other advanced industries.

This week’s setback was unexpected. Through late last week, Trump administration officials were suggesting that negotiators were making steady progress.

U.S. officials say they got an inkling of China’s second thoughts about prior commitments in talks last week in Beijing but the backsliding became more apparent in exchanges over the weekend. They wouldn’t identify the specific issues involved.

A sticking point is U.S. insistence on an enforcement mechanism with penalties to ensure Beijing lives up to its commitments. American officials say China has repeatedly broken past promises.

READ MORE: Major Canadian canola exporter to China says finding new markets not easy

China wants tariffs lifted as soon as an agreement is reached, while U.S. officials want to keep them as leverage to ensure compliance.

Canadian Prime Minister Justin Trudeau urged Trump in a phone call to press China to release two Canadians who have been held for five months.

The men were detained in apparent retaliation after Canada arrested an executive of Chinese tech giant Huawei on U.S. charges of bank fraud.

Joe McDonald, The Associated Press


Like us on Facebook and follow us on Twitter.

Just Posted

Mammoth sturgeon catch was ‘a fish of a lifetime’ for Chilliwack guide

Sturgeon was so enormous it tied for largest specimen every tagged and released in the Fraser

Body found believed to be missing Chilliwack senior with dementia

Police says case is now in the hands of the coroner

Archaeology uncovers buried Sts’ailes history

The second annual UBC field school saw students excavating a village on traditional Sts’ailes land

Man dies after hit-and-run in Abbotsford

77-year-old pedestrian dies in hospital after collision on Marshall Road

Kennedy, Cartier Roads could see upgrade in Kent’s next budget

Residents living and working on Kennedy Road wrote to complain about the dust from the gravel

Sts’ailes invites adults to become engaged in Halq’eméylem with new video series

‘Qw’oqwel te Qw’oqwel’ gives language learners an immersive way to learn Halq’eméylem

New study suggests autism overdiagnosed: Canadian expert

Laurent Mottron: ‘Autistic people we test now are less and less different than typical people’

B.C. father tells judge he did not kill his young daughters

Andrew Berry pleaded not guilty to the December 2017 deaths

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

Fraser River sea bus proposed to hook into TransLink system

Maple Ridge councillor just wants to start discussion

Rosemount cooked diced chicken linked to listeria case in B.C.

The symptoms of listeria include vomiting, nausea, fever, muscle aches

B.C. seniors allowed more choice to stay in assisted living

Province doesn’t need to wait for a complaint to investigate care, Adrian Dix says

Retired B.C. fisherman wins record $60M Lotto Max jackpot

Joseph Katalinic won the biggest Lotto Max prize ever awarded

Most Read