China threatens US with tariff retaliation
Former OMB Chief Economist Joseph Minarik on the Trump administration trade negotiations with China.
China threatened on Thursday to retaliate against the U.S. if President Trump goes ahead with his plan for a sharp increase in tariffs against the world's second-largest economy, even as trade talks between the two nations resume Thursday in Washington, D.C.
Beijing's threat responds to Trump's decision, announced over the weekend, to slap an additional 25 percent tariff on $325 billion worth of Chinese goods, which the administration says will kick in Friday at 12:01 a.m. ET.
The U.S. already imposes a 10 percent tariff on $200 billion of goods and a 25 percent tariff on $50 billion of tech products.
China's Commerce Ministry said on its website that the "Chinese side deeply regrets that if the U.S. tariff measures are implemented, China will have to take necessary countermeasures," according to Reuters.
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Talks between the U.S. and China are expected to begin Thursday and extend into Friday at least, the date the U.S. is expected to impose a new round of tariffs against China.