US tariffs on $200 bln of Chinese goods go into effect

The third round of US tariffs on $200 billion worth of Chinese goods goes into effect today, as the trade dispute heats up between the world’s two biggest economies.

US President Donald Trump's administration has imposed duties of 10 percent on 6,000 Chinese products, including goods such as handbags, rice, and textiles. The rate is set to increase to 25 percent by the end of the year.

The tariffs went into effect just after midnight Washington time on Monday (midday in Beijing).

The first round of tariffs was announced in July, when the White House slapped 25 percent tariffs on $34 billion worth of Chinese products.

The following month, the trade dispute escalated as Washington imposed a 25 percent tax on a second set of goods worth $16 billion.

China, in turn, has imposed duties on $50 billion worth of American products, targeting key parts of the president's political base, such as farmers.

The Asian country is expected to respond to the latest set of tariffs with duties on $60 billion on American goods, a move that Trump has said would prompt new duties on another $267 billion in Chinese imports. If the American leader follows through on this threat, US tariffs would cover all goods the country imported from China last year. 

Amid mounting trade tensions, China on Saturday called off planned trade talks with US officials, saying talks cannot occur as long as President Donald Trump continues to threaten imposing new tariffs.

“The door for trade talks is always open but negotiations must be held in an environment of mutual respect,” said a white paper carried by the state-run Xinhua News Agency. Negotiations “cannot be carried out under the threat of tariffs.”