China's tit-for-tat 84% tariffs on U.S. imports take effect, as trade tensions escalate

Trade tensions between the world's two largest economies show little sign of dialing down any sooner.

China's retaliatory tariffs of 84-percent on U.S. imports came into effect this afternoon, just hours after the U.S. decided to raise tariffs on China to 125-percent.

Bae Eun-ji explains more.

China's countermeasures against the U.S. took effect at noon, Beijing local time, after the Chinese government announced its decision to impose 84 percent additional tariffs on all American imports.

The country had earlier vowed to "fight to the end," and said in a statement that the U.S. escalation of tariffs is a "mistake upon mistake."

"We will continue to take resolute and strong measures to safeguard our legitimate rights and interests."

In addition to the tariffs, China's commerce ministry announced that it had imposed export controls on 12 American companies, banning Chinese companies from supplying them with dual-use products with military and civilian applications.

It also added six more U.S. firms to its "unreliable entity list," which bans them from trading or making new investments in China.

But China did leave room for dialogue with Washington.

When asked about whether the two sides have started tariff negotiations, the commerce ministry said in a regular briefing on Thursday that it's open to talks, but stressed that this must be based on "mutual respect and equality."

The two countries have been going back and forth with tariffs, since U.S. President Donald Trump returned to office earlier this year.

In February, Trump imposed additional 10 percent tariffs on Chinese imports, and China hit back by imposing 15 percent tariffs on U.S. coal and LNG products.

In March, Trump decided to double the levies on China to 20 percent, in which China retaliated by imposing 15 percent tariffs on key American farm products.

Then last week, Trump unveiled an additional 34-percent tariff on all Chinese imports, and China hit back with reciprocal tariffs.

Trump threatened to add another 50 percent, increasing the tariff rate to 104 percent.

China immediately responded by increasing tariffs on American imports from 34 to 84 percent.

And now, Trump has hit back China harder with tariffs of 125 percent, leading to retaliation from Beijing.

As both countries refuse to back down, eyes are now on whether the two largest economies in the world will be able to reach a trade deal in the near future.

Bae Eun-ji, Arirang News.