New tariffs escalate US-Chinese trade battle
China has announced it is raising tariffs on $60bn (£46bn) of US goods in retaliation for the latest hike in American tariffs on its exports.
The move deepened a trade battle between the countries and sent financial markets into a tailspin.
China's finance ministry said the new penalty duties of 5% to 25% on hundreds of US products, including batteries, spinach and coffee, will take effect on June 1.
That followed Donald Trump's increase on Friday of duties on $200bn (£153bn) of Chinese imports from 10% to 25% after claiming that China had backtracked on commitments it made in earlier negotiations in a dispute over Beijing's technology ambitions and perennial trade surplus.
Resuming his messages over Twitter early yesterday President Trump warned Chinese President Xi Jinping that China "will be hurt very badly" if it doesn't agree to a trade deal. Mr Trump tweeted China "had a great deal, almost completed, & you backed out!"
Mr Trump insisted the tariffs the US has placed on Chinese goods do not hurt American consumers, saying there is "no reason for the US consumer to pay the tariffs".
But White House economic adviser Larry Kudlow acknowledged on Sunday that US consumers and businesses pay the tariffs. "Both sides will pay," he said.
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