The U.S. raises tariffs on $200 billion of Chinese imports, escalating trade tensions ahead of high-level negotiations.
President Trump increased tariffs on $200 billion of Chinese goods from 10% to 25%, effective Friday, citing slow progress in trade talks. The move targets key sectors including technology, manufacturing, and agriculture, raising concerns over supply chain disruptions.
The escalation follows months of negotiations, with the U.S. accusing China of backtracking on earlier commitments. Beijing has vowed to retaliate, though no specific measures have been announced. Markets had largely priced in the tariff hike, but analysts warn of prolonged uncertainty.
Futures on U.S. equities dipped modestly, while safe-haven assets like gold and the Japanese yen gained. The yuan weakened slightly against the dollar, reflecting investor caution ahead of further developments.