US officially more than doubles tariffs on $200 billion worth of Chinese goods

The US has more than doubled tariffs on $200 billion worth of Chinese products, ratcheting up tensions in final talks to salvage a bilateral trade deal.

The tariff increase on Chinese goods from 10% to 25% officially took effect on May 10. China said it would respond with "necessary countermeasures".

The move comes as top officials from both sides are trying to salvage a trade deal in Washington. The US and China recently appeared to be close to reaching an agreement.

Trade talks between Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin continued on May 9.

Containers and trucks at an automated container terminal in Qingdao port, Shandong province, China, December 10, 2018. Photo: Reuters.

Previously, US President DonaldTrump said he had received a "nice letter" from Chinese President Xi Jinping and they would likely speak by phone.

A White House spokesman said US officials agreed with Vice Premier Liu He to continue negotiations on the morning of May 10.

Initially, the 10% tariff on Chinese products worth200 billion USD, including fish, handbags, clothing and footwear, was due to increase early this year. The plan was delayed as talks progressed, but Mr Trump recently said the talks were moving “too slowly”.

Ahead of the talks, Mr Trump said China had “broken the deal” and would pay a price.

Analysts say the tariff hike would hit some US companies and consumers hard because companies could absorb some of the costs.

The US and China have been negotiating since agreeing to a ceasefire in December 2018.

According toBBCDespite optimism about progress in recent trade talks, sticking points remain unresolved. These include issues around intellectual property protection, how quickly tariffs can be rolled back and how to enforce the deal.

US President Donald Trump has sparked a trade war with China, criticizing the trade imbalance between the two countries and China's intellectual property rules that he says are hampering US companies.

Both sides have imposed tariffs on billions of dollars worth of each other's goods. Last year, the US imposed tariffs on Chinese goods worth250 billion USDand China responded to110 billion USDProduct of America.

The International Monetary Fund (IMF) said the tit-for-tat actions by the US and China pose a “threat to the global economy” as “everyone loses in a protracted trade conflict” and called for a “quick resolution”.