BEIJING : China moved to retaliate against the United States, announcing plans on Monday to raise tariffs on American goods ranging from beer and wine to swimsuits, shirts and liquefied natural gas.
The decision, which follows President Trump’s increase in tariffs on Chinese goods last Friday, escalates the pressure in the ongoing trade war.
Trade talks between the two sides broke down last week without a deal, causing tensions that have rippled through financial markets and the global economy. American stocks plunged on Monday, extending the recent losses.
Beijing’s retaliation comes at a time when many in China feel that the United States has behaved highhandedly in threatening tariffs. “Mutual trust and respect are of the essence in handling the negotiations,” said Zhu Ning, a Tsinghua University economics professor.
It isn’t clear whether China’s retaliation would end with the tariff increases. In the past, China has slowed imports at customs and launched investigations into foreign companies during times of tension.[Read more on how both the United States and China left a window for negotiators to try to reach a deal before their economies are hit by the higher tariffs. But it is unclear whether the two sides can quickly resolve what has once again become a heated economic dispute.]