US and China exchange tariffs as trade talks are revived

US tariffs on up to US$16 billion of Chinese goods came into effect today, prompting China to hit back with measures of its own.

Some 279 Chinese products, mainly consisting of plastics, chemicals and semiconductors, are subject to an additional 25 per cent duty, CNBC reports. China in return has introduced tariffs targeting up to US$16 billion of US goods focused mainly on fuel, steel and medical equipment.

Again, China has sought only to match US tariffs, rather than raise the stakes in the trade war. However, a statement from the Ministry of Commerce made Beijing’s dissatisfaction clear. “China firmly opposes” the US tariffs and will “continue to make counterattacks,” the statement read.

It added that China will “file a law suit against this US taxation measure under the WTO dispute settlement mechanism.”

All of this comes on the day of new talks between the two sides – the first formal discussions since June.

A Chinese delegation led by Chinese Vice Minister of Commerce Wang Shouwen will meet with US negotiators headed by Treasury Undersecretary David Malpass in Washington. But with the trade war showing no signs of changing direction, it is unlikely a breakthrough will be made during what are mid-level talks.

President Trump told Reuters on Monday that he does not “anticipate much” from this week’s discussions.