The world’s two largest economies did not strike a deal to avert sweeping U.S. tariffs, which came into effect after midnight. Beijing immediately retaliated.

Beijing announced tariffs on Tuesday on some American imports including crude oil, agricultural machinery and liquefied natural gas, in retaliation for the Trump administration’s imposition of 10% tariffs on Chinese imports into the United States.

U.S. tariffs of 10% on Chinese imports came into effect on Tuesday, risking a renewed trade war between the world's top two economies as President Donald Trumppunishes China for not halting the flow of illicit drugs.