The new tariffs imposed by the US and China have gone into effect.

The US has imposed tariffs on $200 billion (£152 billion) worth of Chinese goods, whilst China retaliated with $60 billion of US goods.

Soon after the tariffs went into effect, Beijing accused Washington of engaging in “trade bullyism”.

Beijing also said it could restart trade negotiations if the talks are “based on mutual respect and equality”.

Matthew Goodman, senior vice president at the Asian economics at The Center for Strategic and International Studies, said: “It’s hardly surprising the Chinese have called off these talks, they don’t really know who to talk to or what to talk about since the Trump administration has sent very mixed signals about what they want.”

In total, the US has introduced three rounds of tariffs on Chinese products this year, which totals $250 billion worth of goods. This is half of all Chinese imports to the US.

The new taxes will affect handbags, rice and textiles. Some items including smart watches and high chairs are exempt.

Donald Trump has threatened further tariffs on Chinese goods. He said that taxes on another $267 billion of goods were “ready to go on short notice”

Steven Yue, the sales manager at Hebei Huayang Steel Pipe (HHSP), told the BBC: “The Chinese government will not just sit back.”

“The US has many big enterprises with a lot of vested interests and investments in China. If the US begins to attack the Chinese, then it will have a big impact on American businesses operating here – not just against China.”

“Whoever has the will win. But for now, I still believe China has the ability to keep things under control,” he added.