China imposes tariffs on U.S. goods in payback for Trump

China has imposed retaliatory tariffs of up to 25 percent on more than 120 U.S. imports worth $3 billion in a move aimed at preserving its economic interests in the wake of U.S. President Donald Trump’s recent decision to hike duties on foreign steel and aluminium imports.

The two countries are locked in a tit-for-tat trade battle, which China will not want to escalate given the large surplus that leaves it exposed in the face-off, writes the BBC.

Beijing has stopped short of unleashing an all-out trade war as the new tariffs do not cover some of the U.S.’s biggest exports to China, notes The Guardian.