China announced May 13 that it would be issuing higher tariffs of
its own on a range of goods coming into the country, CNN reports. The announcement
came just days after President Donald Trump increased tariffs on Chinese goods coming
into the U.S.
The tariffs will affect $60 billion of goods coming from the U.S.
starting June 1. The tariffs encompass more than 4,000 items, including
machinery and equipment. Most of the tariffs will be increased to 25 percent,
up from 10 percent.
The tariffs exacerbate already-tense negotiations between the two
countries. While the two sides were rumored to be closing in on a trade agreement
last week, President Trump Tweeted that Chinese representatives reneged on their
tentative agreements.
The ongoing trade war, which began in July 2018, has had negative repercussions
for both countries. Peoria, Illinois-based Caterpillar has been one of the
hardest hit by the sanctions, reporting that the Chinese tariffs cost the company
more than $100 million in 2018.
It is unknown when trade discussions between the two countries
will commence; however, some are speculating that President Trump and Chinese
President Xi Jinping may meet at the G-20 summit in Japan later in June.