US Goes Ahead With New Tariffs Despite Talks

President Donald Trump's increased tariffs on US$200 billion in Chinese imports are taking effect, heightening tensions with Beijing.

At 12:01am in Washington on Friday, the Trump administration raised the import taxes on those goods from 10% to 25%.

The tariff increase took effect even after negotiators for the two sides resumed talks on Thursday in Washington.

China had said it would retaliate if Trump proceeded with his threat to raise those tariffs.

The Ministry of Commerce said in Beijing that China found the tariff increase deeply regrettable, and that it has no choice but to take "necessary" retaliation measures.

The ministry said that as the trade talks are ongoing, it hoped the US would work with China to resolve problems through cooperation and negotiations.

The higher import taxes won't hit goods that already left Chinese ports before Friday's deadline. Only when those shipments complete the three- to four-week voyage across the Pacific to the US would they face the 25% tariff.

President Trump got a briefing from his trade negotiators, but made no move to hold off on the tariffs – dashing hopes there might be a last minute reprieve as the negotiations continued.

Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin had returned to the bargaining table late on Thursday, and the US team met with Trump in the night to brief him and "agreed to continue discussions tomorrow morning at USTR," the White House said in a statement.

Lighthizer and Mnuchin met with the Chinese delegation for about 90 minutes on Thursday evening. The White House statement said they also "had a working dinner with Vice Premier Liu He".

Despite optimism from officials in recent weeks that the talks were moving towards a deal, tensions reignited this week after Trump angrily accused China of trying to backpedal on issues already agreed to in the negotiations.

"They took many, many parts of that deal and they renegotiated. You can't do that," Trump said on Thursday.

But he held out hopes of salvaging a trade deal, even with the sudden flare-up in hostilities.

"It's possible to do it," Trump said. "I did get last night a very beautiful letter from President Xi." (AP, RTHK)

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