U.S., China Impose Tariff Hikes

The U.S. and China, the world’s two largest economies, have both imposed tariff hikes on products entering their countries.

The decisions came after the two countries were unable to finalize a trade deal, CNBC reports.

Initially, the U.S. increased tariffs on approximately $200 billion worth of Chinese products from 10 percent to 25 percent, according to the CNBC article. China then responded by raising tariffs on $60 billion in U.S. goods, the article says.

China is implementing trade duties of up to 25 percent on more than 5,000 products, including food items such as peanuts and sugar, CNBC reports. The tariffs on U.S. products are expected to begin June 1.

U.S. officials say Chinese representatives “backed out of major parts of a developing trade agreement,” according to CNBC.