The Trump administration's latest round of tariffs on Chinese goods kicked in

Thursday, drawing immediate retaliation from Beijing.

The new exchange of fire in the trade war between the two economic superpowers
comes as officials from both countries hold talks in Washington over the dispute.
The United States imposed 25% tariffs on another $16 billion of Chinese goods just
after midnight ET Thursday -- midday in Beijing. The tax affects 279 Chinese
products, including chemical products, motorcycles, speedometers and antennas.
China had said it would respond immediately with 25% tariffs on an equal amount
of American goods, such as chemical products and diesel fuel.
Both China and the United States have now imposed tariffs on $50 billion of each
other's goods in the clash, which the Trump administration launched in an effort to
punish China for what it says are unfair trade practices, such as stealing
intellectual property. The first round of tariffs went into effect in July.
And more are in the pipeline.

The United States has threatened to slap 25% tariffs on an additional $200 billion of
goods. China has said it would respond with tariffs on another $60 billion of American
goods in retaliation. It's harder for China to match this latest threat dollar-for-dollar
because the United States exports far less to China.

Chinese and US officials are meeting in Washington this week for a new round of trade
talks. Previous negotiations failed to produce any lasting deals, and President Donald
Trump has suggested the current talks may not be much different.

Trump said in an interview with Reuters this week that he did not "anticipate much"
from the discussions, which involve lower level officials than in previous rounds.
Resolving the dispute will "take time because China's done too well for too long, and
they've become spoiled," he said.

Trump economic adviser: Targeted tariffs work 01:39

Plenty of American companies are worried. Many have warned the latest measures
would hurt their business, and they would not be able to absorb 25% tariffs without
raising prices on American consumers.
Representatives from the motorcycle industry, electric bicycle makers, food equipment
manufacturers, and chemical companies have written to the government or testified in
opposition to this latest round of tariffs.

The CEO of Purolite, a company that imports chemicals used to purify water testified
before the US Trade Representative's Office. He warned that tariffs on those
chemicals could reduce an already short supply.

"By further reducing the supply of these products in the United States, the proposed
tariffs threaten higher prices for US consumers and a higher level of contaminants in
American drinking water, food chain, waste water, and chemicals," said CEO Stefan
Brodie at a hearing last month.

But other companies said they wanted items added to the list. The president of
Southwire, an electrical wire, cable and cord manufacturer, said tariffs on certain
cables would allow the company to remain profitable.

"The Chinese government has engaged in a series of policies designed to promote

exports of these products and enable Chinese producers to capture significant global
market share," said president Charlie Murrah at the hearing.