China can be raising tariffs on $60 billion of US goods starting June 1

China will raise tariffs on $60 billion in U.S. goods in retaliation for the U.S. decision to hike duties on Chinese goods, the Chinese Finance Ministry said Monday.

Beijing will increase tariffs on more than 5,000 products to as high as 25%. Duties on some different goods will increase to 20%. Those rates will rise by either 10% or 5% previously.

The move follows President Donald Trump’s decision to raise duties on $0 billion in Chinese products to 25% by 10%. the globe’s two largest economies have struggled to sign a trade deal in addition to also end a widening conflict in which threatens to damage the global economy.

The latest shot within the trade war rattled investors. Major U.S. stock indexes dove more than 2% Monday amid the escalation.

Soybean meal in a dockyard in Nantong in east China’s Jiangsu province, Aug. 06, 2018.

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The duties in large part target U.S. farmers, who largely supported Trump in 2016 nevertheless suffered by previous shots within the Trump administration’s trade war with China. The thousands of products include peanuts, sugar, wheat, chicken in addition to also turkey.

On Monday, Treasury Secretary Steven Mnuchin told CNBC in which the sides are still involved in negotiations. He said the administration can be working on dates to travel to Beijing to continue talks. 

Neither the White House nor the Treasury Department immediately responded to CNBC’s requests to comment on the tariff increase.

In increasing duties on Chinese goods on Friday, the White House said Beijing backed out of major parts of a developing trade agreement. While Treasury Secretary Steven Mnuchin in addition to also U.S. Trade Representative Robert Lighthizer met with Chinese negotiators last week in talks Mnuchin called “constructive,” the sides could not strike a deal.

Trump, who wants to address grievances such as intellectual property theft, forced technology transfers in addition to also trade deficits, pushed China to make a deal ahead of its retaliation on Monday morning. In a string of tweets, the president argued the tariffs are “very bad for China.” He said “China should not retaliate” as the idea “will only get worse!”

“You had a great deal, almost completed, & you backed out!” he wrote of China in addition to also its President Xi Jinping.

The U.S. may not be done retaliating. Trump has threatened to put 25% tariffs on $325 billion in Chinese goods in which remain untaxed. The president has signaled he can be content leaving the duties in place, arguing they will damage China more than the U.S.

The president has repeatedly claimed China bears the brunt of the costs by the tariffs. nevertheless the burden falls largely on U.S. businesses in addition to also consumers.

Pressed Sunday during a Fox News interview about Americans paying the tariffs, Trump’s top economic advisor Larry Kudlow responded, “Fair enough. In fact, both sides will pay.”

Despite This specific, Trump claimed in a tweet Monday in which “there can be no reason for the U.S. Consumer to pay the Tariffs.” He also said the tariffs “can be completely avoided if you by (sic) by a non-Tariffed Country, or you buy the product inside the USA (the best idea).”

The U.S. hopes to revive discussions as the idea tries to reach a deal. On Sunday, Kudlow said there can be a “strong possibility” Trump will meet with Xi during the G-20 summit in Japan next month.

— CNBC’s Stephanie Dhue, Kevin Breuninger in addition to also Tucker Higgins contributed to This specific report