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

U.S. President Donald Trump will speak with Chinese President Xi Jinping as soon as this week, Trump's spokesperson said, setting up a major diplomatic exchange as the world's two largest economies seek a deal that could avert a broader trade war.

Beijing hit back with its own tariffs and export restrictions after being subjected to levies by President Trump. Trade experts said China appeared to aim for minimal short-term harm while showing the range of its possible responses.