Global stock markets fell heavily yesterday after the US Trade Representative outlined plans for a 10% tariff on other 6,000 individual Chinese imports (everything from meat and vegetables to stamps and baseball mitts).
Topping the list is furniture ($29 billion USD), computer network routers ($23 billion), and assorted computer components ($20 billion).
This second round of tariffs won't hit right away; they require a two-month review process with hearings in late August.
U.S. President Donald Trump and China's President Xi Jinping arrive for a state dinner at the Great Hall of the People in Beijing, on November 9, 2017. The Republican-controlled Senate voted 88-11 in favour of a non-binding resolution calling for Congress to have a role in implementing such tariffs. One of the officials said the us has repeatedly made its concerns clear and continues to hope for a negotiated solution, but Beijing hasn't changed its behavior.
China immediately retaliated with duties on the same value of USA goods, including soybeans and cars.
Mr Trump has been considering tariffs against China since his officials concluded in March that Beijing violates U.S. intellectual-property rights, such as by forcing American firms to hand over technology. Imposing taxes on another $200 billion worth of products will raise the costs of every-day goods for American families, farmers, ranchers, workers, and job creators.
Based on recent data, Jones said US-owned subsidiaries in China generated sales of around $US350 billion, "which is similar in scale to the U.S. trade deficit in goods with China".
The Wall Street Journal, citing unnamed Chinese officials, said Beijing was considering holding up licenses for USA companies, delaying approvals of mergers involving US firms and stepping up border inspections of American goods.
China's Commerce Ministry said the tariffs, which cover everything from refrigerators to handbags, are "totally unacceptable". "Rather than address our legitimate concerns, China has begun to retaliate against U.S. products".
But with the economy growing by as much as four percent in the second quarter, unemployment at the lowest in a generation, and corporate profits soaring as a result of massive US tax cuts, Trump may feel comfortable ignoring those fears.
Christine McDaniel, a senior research fellow at George Mason University in Virginia, told VOA that while the Trump administration's actions have bipartisan congressional support, its strategy to date of tariffs and investment restrictions could be costly to US manufacturers and consumers. Before the latest anti-China announcement, German Chancellor Angela Merkel and Chinese premier Li Keqiang held a meeting in Berlin in which they pledged to uphold the rules-based order.
There was a price to be paid by American companies as government policies legislated winners and losers.
"A lot of supplies on construction machinery come from China".
Trump has said continuously that China has taken advantage of the United States economy, and he has vowed to hit almost all the country's products with tariffs, as much as $450bn. Hong Kong's main index shed 1.3 percent.
Trump has said the tariffs are meant to punish China for using unfair trade practices.
"For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition", Lighthizer said.
That source's website was reportedly instructed not to publish its own stories about the ongoing trade battle, and not to send out news alerts to its app's users about the topic. The S&P 500 closed 0.7 per cent lower, while the Nasdaq is down 0.6 per cent.