China “deeply regrets” US tariff hike, vows countermeasures

China “deeply regrets” US tariff hike, vows countermeasures

10/05/19

Luke Foddy, Communications Manager

President Trump has made good on his threat to hit China with additional tariffs today (Friday), increasing duties on US$200 billion worth of goods from 10 per cent to 25 per cent, the BBC reports.

The escalation follows President Trump’s warning on Sunday that additional tariffs will be imposed unless a breakthrough is made during negotiations in Washington this week.

The US had earlier accused China of reneging on previously-agreed terms of the deal, which now appears to be drifting from reach.

China has vowed to respond with countermeasures, and said it “deeply regrets” the US decision, state media outlet Xinhua reports, citing the Chinese delegation in Washington.

The delegation took aim at the US in its messaging, saying ‘China hopes that the United States can meet China halfway,’ – suggesting that Beijing feels Washington is taking an uncompromising stance.

However, China’s Commerce Ministry expressed optimism that a deal could be reached, according to the Financial Times.

Reuters reports that Chinese Vice Premier Liu He spoke with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for 90 minutes on Thursday and were expected to resume talks on Friday.

US stock futures fell and Asian shares pared gains after the US tariff hike, with investors worried that a protracted trade war could hamper global economic growth.