In response to the United States’ increase in tariffs to 25% on $200 billion worth of goods from China, Beijing responded on May 13 to impose its own tariff increase on $60 billion worth of American goods.
The increase, set to come into force on June 1, will see tariff increases on 5,140 goods, announced the Chinese finance ministry.
“China’s adjustment of tariff-adding measures is a response to US unilateralism and trade protectionism. The Chinese side hopes that the US will return to the correct track of bilateral economic and trade consultations and work together with China to move toward each other and strive to reach a mutually beneficial and win-win agreement on the basis of mutual respect,” read a statement from the ministry.
The breakdown of the tariffs is as follows: 2,493 items will be subject to a 25% tariff; 1,078 items will be subject to a 20% tariff; 974 items will have a 10% tariff; while 595 items will receive a 5% tariff.
The S&P 500 fell more than 2% after trading began in New York, and companies with shares dependent on trade with China, such as Apple, also saw poor results.
Trump has also threatening to impose a 25% tariff on remaining Chinese goods imported into America totalling $300 billion in products.
It’s hoped that U.S. President Donald Trump will reach a deal with Chinese President Jinping Xi next month when the two leaders will come face to face during the Group of 20 meeting in Osaka, Japan.