The escalating trade conflict between the world's two largest economies...has seen the two sides impose tariffs on 34-billion dollars worth of each other's goods.
China's exports surged more than expected in July despite US duties and its closely watched surplus with the United States remained near record highs, as the world's two major economic powers ramp up a bitter dispute that some fear could derail global growth.
But China exports far more to the United States than the other way round, making it more challenging for the country to hit back against U.S. tariffs. The tariffs go into effect on August 23.
US President Donald Trump has boasted that trade wars are "easy to win" and warned he would hit virtually all Chinese imports if Beijing does not back down and take steps to reduce its $335 billion surplus with the US.
It will be the second time the United States slaps duties on Chinese goods in about the past month, despite complaints by American companies that such moves will raise business costs and eventually consumer prices.
The Office United States Trade Representative (USTR) announced the tariffs in a statement released on Tuesday afternoon US time.
China has, in recent years, become a key export market for growing USA energy exports.
The tariffs will be activated on August 23, the ministry said, the same day that the United States plans to begin collecting 25 per cent extra in tariffs on $16 billion USA in Chinese goods. The new list covers products ranging from motorcycles to steam turbines and railway cars. And Chinese regulators last month barred Qualcomm, a US telecom leader, from completing its $44 billion acquisition of Netherlands-based NXP, which would have made it a more formidable competitor for Chinese companies.
ANZ senior China economist Betty Wang said Beijing will likely resist using its closely managed currency as a tool in the trade war.
"Under the threat of tariffs, the U.S.is benching businesses and encouraging the Chinese to import goods from America's foreign competitors", Chandler said. That's 24% of all Washington exports according to the Washington Department of Agriculture. But it was 11 percent higher than in the same month past year.
China fired back warning it would impose duties on $60 billion in U.S. goods.
Administration officials believe that the $505 billion Americans spend on Chinese products each year gives them leverage over China.