China will take necessary countermeasures in response to the U.S. imposing additional tariffs on Chinese goods, a spokesperson for the Chinese Ministry of Commerce said in a statement on Friday.
The announcement came as a tariff hike on 200 billion U.S. dollars’ worth of Chinese goods came into effect.
“The 11th round of China-U.S. high-level economic and trade consultations is under way. China hopes the two countries can meet each other halfway and make joint efforts to solve the existing problems through cooperation and consultation,” read the statement.
The market was jittery before the hike came into force as investors awaited to see what the trade talks could yield.
The Dow Jones Industrial Average fell 0.54 percent, to 25,828.36, the S&P 500 shed 0.30 percent and the Nasdaq Composite dropped 0.41 percent to 7,910.59.
The VIX volatility index, known as the U.S. stock market panic index, has increased by 48 percent in the past week.