USA tariffs on $200 billion worth of Chinese goods and retaliatory taxes by Beijing on $60 billion worth of U.S. products including liquefied natural gas (LNG) kicked in on Monday as the trade dispute between the world's two biggest economies escalated, unnerving global financial markets.
U.S. tariffs on $200 billion worth of Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of USA products took effect at midday Asian time on Monday. China has retaliated with 5-10% tariffs on $60 billion worth of American goods.
Trump has been already saber rattling about another slate of tariffs on the remaining $267 billion worth of Chinese imports.
The U.S. imported more than $9 billion worth of furniture from China in 2017.
When the talks can restart would depend on the "will" of the United States, Vice Commerce Minister Wang Shouwen said at a news conference in Beijing. "We're going to get an outcome which forces China to behave in a way that if you want to be a power - a global power - transparency, rule of law, you don't steal intellectual property". A senior White House official said last week the USA will continue to engage China, but added there was no date for further talks.
China and the United States imposed new tariff hikes on each other's goods Monday and Beijing accused Washington of bullying, giving no sign of compromise in an intensifying battle over technology that is weighing on global economic growth.
Neither side has backed down since the tit-for-tat tariff war began in July when the USA imposed duties on US$34 billion of Chinese goods.
The US recently sanctioned a Chinese military procurement organisation, drawing a sharp protest from Beijing and a decision to postpone planned military talks.
"We will actively take all types of measures to help companies resolve their difficulties", Luo Wen, Vice Minister of Industry and Information Technology, said when asked about how companies would fare in the trade war.
But in a policy statement issued just hours after the dual tariffs took effect, Beijing accused Washington of using tariffs as a means of intimidating other countries to submit to USA wishes on economic matters. In 2017, the USA imported quantities of these items from China ranging from $3 billion (wooden furniture) to $11.6 billion (printed circuit boards), Business Insider reported.
Isaac Boltansky, a policy analyst at the research and trading firm Compass Point, said the broadside against China and continued threats of tariffs could trigger a more forceful response from Beijing.
But he said the government is working to accommodate their needs and reduce their tax burdens.
China, which has accused Washington of being insincere in the negotiations, has decided not to send Vice Premier Liu He to Washington this week, The Wall Street Journal reported late last week. Navarro said the goal now is structural realignment where all countries the US trades with engage in "free, fair, and reciprocal" agreements.
But China was able to compensate for the economic impact of the trade war at home, mainly by boosting domestic demand and improving the environment for private businesses, the officials said.