China hits US back with new tariffs

China announced May 13 that it would be issuing higher tariffs of its own on a range of goods coming into the country, CNN reports. The announcement came just days after President Donald Trump increased tariffs on Chinese goods coming into the U.S.

The tariffs will affect $60 billion of goods coming from the U.S. starting June 1. The tariffs encompass more than 4,000 items, including machinery and equipment. Most of the tariffs will be increased to 25 percent, up from 10 percent.

The tariffs exacerbate already-tense negotiations between the two countries. While the two sides were rumored to be closing in on a trade agreement last week, President Trump Tweeted that Chinese representatives reneged on their tentative agreements.

The ongoing trade war, which began in July 2018, has had negative repercussions for both countries. Peoria, Illinois-based Caterpillar has been one of the hardest hit by the sanctions, reporting that the Chinese tariffs cost the company more than $100 million in 2018.

It is unknown when trade discussions between the two countries will commence; however, some are speculating that President Trump and Chinese President Xi Jinping may meet at the G-20 summit in Japan later in June.