U.S., China raise tariffs in latest round of trade dispute

The United States and China on Thursday escalated their trade war by implementing additional 25 percent tariffs on each other’s goods. The planned tariffs on goods valued at $16 billion from each side cover automobiles and metal scrap from the United States and Chinese-made factory machinery and electronic components. The increases follow tariffs assessed last month by both nations on each other’s imports of goods worth $34 billion. China’s Ministry of Commerce released a statement saying it will file a lawsuit under the World Trade Organization’s dispute resolution mechanism.

The tariffs go into effect as officials from the two countries continue talks that began Wednesday in Washington. Chinese Foreign Ministry spokesman Lu Kang said China hopes “the U.S. side will get along with us to strive for a good result from the talks with a reasonable and practical attitude.”

The United States proposes another 25 percent tariff on Chinese goods worth $200 billion, while China threatens to retaliate with tariffs on American goods valued at $60 billion.