Days after the Trump administration made good on their promise to raise Section 301 tariffs on Chinese imports, China's State Council Customs Tariff Commission announced new tariffs on $60 billion worth of U.S. goods. China's latest tariffs on 5,140 products will take effect on June 1, adding up to 25% to the cost of U.S. goods that are covered by the new policy.

China’s latest counter-strike was expected after the U.S. raised Section 301 tariffs on May 10. Speaking about the likelihood that China would retaliate with their own set of tariffs, President Trump's top economic adviser Larry Kudlow said, "I reckon they will. We'll see what they come up with."

President Donald Trump has threatened to escalate tariffs on Chinese goods from 10 percent to 25 percent in a series of tweets Sunday, May 5 and Monday, May 6. In response, the value of the yuan and crude oil fell, and the Dow Jones Industrial Average plunged 450 points triggered by a global selloff.

“Risks of a full-blown trade war are escalating,” said Chua Hak Bin, a senior economist at Maybank Kim Eng Research in Singapore. “Trump’s threat may backfire as China will not want to negotiate with a gun pointing at their heads.”

China’s Ministry of Finance stated on December 14 that China plans to suspend the additional 25% tariff on cars that are manufactured in the United States for three months, starting on January 1, 2019. This planned tariff halt follows China’s purchase of U.S. soybeans, and is another installment of the trade ceasefire that was announced by China’s President Xi last week in an effort to de-escalate the trade war with the U.S.

In a statement on its website, the Ministry of Finance also expressed its hopes that China and the U.S. can speed up negotiations to remove all additional tariffs on each other's goods. The announcement was met with cautious optimism by both national leaders and investors alike.