Financial markets were braced for a full-blown trade war between the world’s two economic superpowers as the US imposed higher tariffs on $200bn worth of Chinese goods.
Last-minute talks in Washington between Chinese vice premier Liu He and US trade representative Robert Lighthizer failed to salvage months of talks on a deal and at 12.01am on Friday tariffs on Chinese goods were raised to 25% from 10%.
China’s ministry of commerce said in a statement just after the deadline: “The Chinese side deeply regrets that it will have to take necessary countermeasures,” adding that “high-level economic and trade consultations” were underway.
“It is hoped that the US and the Chinese side will work together to resolve existing problems through cooperation and consultation,” it said. » | Lily Kuo in Beijing, and Martin Farrer | Friday, May 10, 2019
