China vows to take 'countermeasures' over US tariffs on Chinese goods

China has vowed to take “necessary countermeasures" after US President Donald Trump escalated his trade war with Beijing; just hours after delegations from the two sides wrapped up a first day of trade negotiations in Washington.

The Trump administrator raised tariffs on $200 billion of Chinese imports from 10 percent to 25 on Friday, as Beijing and Washington appeared to be close to ending months of trade dispute after returning to the negotiation table in Washington on Thursday.

Chinese commerce ministry on Friday lamented the move and reiterated Beijing’s pledge to take "necessary countermeasures.”

"China deeply regrets that it will have to take necessary countermeasures," the statement said, but did not specify what those countermeasures might be.

“It is hoped that the US and Chinese sides will meet each other halfway and work together” to resolve their dispute, it added.

China had earlier vowed to raise tariffs on $60 billion of US imports. It could also use other tactics to disrupt business for US firms in China.

Trump’s latest tariff hike took effect Friday, as a delegation of Chinese officials led by Vice Premier Liu He was to meet for a second day with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin in Washington.

Trump initiated what is effectively a trade war with China last year, when he first imposed unusually heavy tariffs on imports from the country.

Since then, the two sides have exchanged tariffs on more than $360 billion in two-way trade.

Late Thursday night, Trump got a briefing from his trade negotiators, but made no move to hold off on the tariffs despite optimism from officials in recent weeks that the negotiations were moving towards an agreement in this round of talks.

Upon his arrival in Washington, the Chinese vice premier said that the prospects for the talks were "promising," but warned that raising tariffs would be "harmful to both sides.”

"Of course, China believes raising tariffs in the current situation is not a solution to the problem, but harmful to China, to the United States and to the whole world,” he added.

The International Monetary Fund also warned against the hike in tariffs, saying that the trade war was a "threat" to global growth.

SS