Chinese products hit with fresh United States duties include everything from vacuum cleaners to internet-enabled devices, while U.S. goods targeted by China include liquefied natural gas and certain types of aircraft. Boeing Co, the biggest USA exporter to China, dropped 1.1 percent and Caterpillar Inc 1.5 percent on the New York Stock Exchange.
As China called off planned trade talks with USA officials, the latest round of retaliatory tariffs went into effect on Monday.
China has responded to the US' tariff measures by seeking the common interests of not just both parties but also the global trade order, and has answered the US' concerns with the "greatest level of patience and good faith". USA exports of goods to China amounted to $129.89 billion in 2017, an increase of 577 percent from $19.18 billion in 2001.
It highlighted what the US stands to lose from this trade war, which has no end-date, said White House insiders.
Beijing fired back Monday, accusing the U.S. of making "false accusations" and using "increasing tariffs and other means of economic intimidation in an attempt to force its own interests on China by way of extreme pressure".
Analysts widely expect the direct impact of the USA tariffs on China's economic growth to be limited. The reality is the current occupant of the Oval Office makes no difference, as the great power rivalries between China and the United States are set to define their bilateral ties for decades to come.
Trump imposed tariffs for the first time in March this year, levying 25 percent on steel imports and 10 percent on aluminum.
The remarks followed the publication of a white paper from China's State Council earlier this week that described recent USA actions as "trade bullyism".
The latest escalation comes as China cancelled further trade talks with the USA, according to media reports.
This explains why Chinese analysts or officials visiting the USA in the past few years have been dismayed to find out that American elites - officials, businessmen, or people working at think tanks - have nothing but criticism for China.
Previous talks in late August saw little progress.
Most countries affected by the U.S. tariffs have responded back in kind.
Beijing has retaliated with tariffs on $60bn of United States goods.
China summoned the USA ambassador in Beijing and postponed military talks in protest against a USA decision to sanction a Chinese military agency and its director for buying Russian fighter jets and a missile system.