A second administration official told CNBC that the cost of these tariffs would amount to 10 percent of all imports targeted, down from earlier estimates of 25 percent. The timing will partially reduce the toll of price increases for holiday shoppers buying Chinese imports in the coming months.
Canada and Mexico, members of the North American Free Trade Agreement (Nafta) with the USA, have imposed their own counter-tariffs on United States goods after Washington's steel and aluminum duties took effect.
In a statement, the ministry also said that the tariffs announced by Trump had "added new uncertainties" to talks between the two sides. China's economy is slowing, with consumers holding back and infrastructure spending dropping sharply.
A weaker United States dollar has boosted gold prices while the price of most base metals slipped on the back of concerns that demand for metals will weaken as a result of the trade dispute. Rather, the United States unilaterally abrogated the treaty in order to strengthen the strategic position of the USA in the Middle East by countering the influence of Iran, and because European corporations stood to benefit from the opening up of new economic opportunities in that country at the expense of their U.S. rivals.
An afternoon recap of the day's most important business news, delivered weekdays.
But Trump warned that "if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports".
The United State's trade actions against China will not work as China has ample fiscal and monetary policy tools to cope with the impact, a senior securities market official said on Tuesday. His comments are likely to further rattle USA businesses, which have pleaded with the administration to abandon the tariffs and warned they will raise prices, cost jobs and hurt the US economy.
China no longer can match USA tariffs on a dollar-for-dollar basis, since it imports only US$135 of American products.
Retailers, manufacturers, and a wide swath of other USA businesses have warned that the new tariffs could hurt their profits, hiring, and growth.
Trump threatened that nations that don't make "fair" deals withe US with getting "Tariffed" on Monday morning prepared to slap the trade rival with the expected $200 billion in penalties. However, without these tariffs, we will be facing an unfair disadvantage. China has retaliated in kind.
"An escalating trade conflict serves no one's interests", Geng said.
Trump has consistently railed against the US' enormous trade gap with China.
In addition to being much larger than previous rounds of tariffs, the new set zeroes in on different targets.
In other words, China must completely scrap the foundational structures of its economy so that it presents no threat to the economic dominance of United States capitalism, a dominance which the United States intends to maintain, if it considers necessary, by military means.
The Trump administration has demanded that China cut its $375 billion trade surplus with the United States, end policies aimed at acquiring US technologies and intellectual property and roll back high-tech industrial subsidies. China has made offers to increase its imports from the U.S., all of which have been rejected.
But China said it would turn down the offer if the USA went ahead with more tariffs, CNN said. The National Association of Chemical Distributors released a study this month that predicted almost 28,000 chemical distributor and supplier jobs would be eliminated because of higher prices from the $200 billion round of tariffs.
"Tariffs have already resulted in layoffs, and this escalation will continue to squeeze American businesses with higher input costs and American farmers with decreasing commodity values", said Jonathan Gold, a spokesman for the coalition.
The total wave of tariffs thus far has not been large enough to meaningfully affect consumer prices broadly across the economy - only narrowly, for certain products. Chinese news reports have quoted a former finance minister as saying Beijing can disrupt American companies' operations by imposing "export controls" if it needs more leverage in its mounting tariff dispute with Washington.