Mr Trump announced on Twitter on Sunday that United States tariffs of 10 per cent on US$200 billion (S$272 billion) worth of Chinese goods will be raised to 25 per cent. The decision was made after Treasury Secretary Steven Mnuchin and USA trade representative Robert Lighthizer said they would bring any Chinese counterproposal to the president, reports The New York Times.
Ongoing talks between the two countries deteriorated after United States officials blamed China for trying to walk back agreements they made in earlier meetings and Trump tweeted over the weekend that he was planning to raise import taxes on $200 billion worth of Chinese goods to 25 percent from 10 percent this Friday.
"The Chinese side deeply regrets that if the USA tariff measures are implemented, China will have to take necessary countermeasures", China's Commerce Ministry said on its website, without elaborating.
"The escalation of trade friction is not in the interest of both countries and the world".
Disagreements between United States and Chinese officials have deepened over the past week over accusations that Beijing would renege on commitments made earlier in negotiations that aimed to end the two countries' trade war. These included measures to address the theft of USA intellectual property and trade secrets; the forced transfer of technology; competition policy; access to financial services; and currency manipulation.
Reaching a deal requires effort from both sides, Gao said, adding that China had demonstrated its sincerity in the ultimate form by sending its trade delegation to the USA despite Washington's tariff threats. Experts say that this is a sign of Trump's frustration over a stalemate in trade negotiations, as real reform of China's trade practices remains elusive. China has threatened to retaliate against any step up in U.S. action.
China expresses regret over U.S. tariff hike, vows countermeasures
The U.S. economy has been strong. -China Economic Security Review Commission and president of The Wessel Group consulting firm. Chinese leaders see industry development directed by the Communist Party as a path to prosperity and global influence.
European and Asian equities and US futures slumped on Wednesday as traders, fearing a collapse of US-China trade negotiations, followed up Wall Street's rout on Tuesday and sold off riskier assets.
The Dow Jones Industrial Average posted its second-biggest daily percentage drop of the year, while the S&P 500 and Nasdaq registered their third-biggest percentage drops, even as the major indexes pared losses to end off their session lows.
Markets, which fell Tuesday, were expected to open lower Wednesday as investors continue to absorb the threat of a prolonged trade war between the world's two largest economies.
David Madden, a market analyst at CMC Markets, said that Europe's equity markets would be "largely mixed" while the trade war was "hanging over the markets". The tariffs will increase the cost of Chinese goods for USA buyers. But that was averted when China announced Liu would return to Washington.
Investors may have taken for granted that the US-China trade dispute would be resolved. But Beijing has said that it is "fully prepared for an escalated trade war", adding that it might impose countermeasures to retaliate against the tariffs.