China and the United States failed to reach an agreement before the deadline on Friday morning; as a result, the United States is increasing tariffs on Chinese exports.
The US tariffs targeted roughly $200 billion of Chinese exports and increased from ten percent to twenty-five percent at 1201 ET Friday morning. Since the initial installation of taxes global growth has slowed and will continue to slow as a result of the increase.
China expressed “deep regret over the development” and stated that they would take the necessary countermeasures to respond.
“We hope the United States will meet us halfway, and work with us to resolve existing issues through cooperation and consultation,” China’s Ministry of Commerce said in a statement. The ministry did not give specifics on how it would respond.
The increase is a result of the United States claiming that China backtracked on commitments made during earlier discussions for the trade deal.
The United States has slammed China repeatedly for indulging in unfair trade practices, stealing property and technology transfers.
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On Thursday Vice Premier Liu He of China’s trade delegation arrived in Washington to continue negotiations. Liu said he “hopes to engage in rational and candid exchanges with the US side,” according to China’s state news agency.
President Trump said after the talks began that he had received a favorable letter from Xi Jinping, the president’s counterpart, which suggested that a deal was still possible. “It’s possible to do it,” Trump said when asked about the prospect of an agreement that would prevent a tariff hike on Chinese goods. “I have no idea what’s going to happen.”