Donald Trump has slapped 25 percent tariffs on $200million of Chinese imports (Image: GETTY)
US-based analyst Gary Shapiro warned the “disastrous” decision would end up hitting US consumers in the pocket as retailers are forced to increase prices to cover their costs, while investment bank Goldman Sachs said time was rapidly running out to find a solution. The new measures took effect today, after two fruitless days of talks between top US and Chinese negotiators aimed at rescuing a faltering deal to end the 10-month dispute between the world’s two largest economies. China’s Commerce Ministry said it “deeply regrets” the US decision, saying it would take necessary countermeasures.
Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin talked for 90 minutes on yesterday Thursday and were expected to resume talks today.
The Commerce Ministry said that negotiations were continuing, and that it “hopes the United States can meet China halfway, make joint efforts, and resolve the issue through cooperation and consultation”.
However, with no action from the Trump administration to reverse the increase as negotiations moved into a second day, US Customs and Border Protection imposed the new 25 percent duty on affected US-bound cargoes leaving China after 12:01 am EDT (0401 GMT) today.
Goods in more than 5,700 affected product categories which left Chinese ports and airports before midnight will be subject to the original 10 percent duty rate, a CBP spokeswoman said.
Robert Lighthizer speaks with Steven Mnuchin as they wait for Chinese vice premier Liu He (Image: AFP/Getty Images)
The grace period was not applied to three previous rounds of tariffs imposed last year on Chinese goods, which had much longer notice periods of at least three weeks before the duties took effect.
Goldman Sachs wrote in a note: “This creates an unofficial window, potentially lasting a
