"It undermines the interests of the Chinese and American people, the interests of companies and the interests of the people all over the world", state-run Xinhua news agency quoted the spokesperson as saying. Shanghai stocks plunged to two-year lows. But with these exemptions expiring at the beginning of the month, nations have been hitting back at the U.S.
China, claiming the United States had "launched a trade war", retaliated immediately, outlining its own tariffs on USA goods worth $50 billion, including agricultural goods, cars and marine products. "China relations could end up hurting some iconic USA companies the most".
Mr Trump said after the legal process is complete, these tariffs worth $200 billion will go into effect if China refuses to change its practices.
Given the imbalance in American and Chinese trade, Beijing has a more limited set of options for adding to its list of tariffs. During the 2016 election campaign, he had promised to use tariffs to cut the United States trade deficits. But the rhetoric is intensifying, with Trump lashing out at Beijing over its threat to retaliate against the administration's latest proposed tariffs.
"Beijing will have to ensure that Washington is aware that there will be heavy price to pay every action it strikes against China if it is to avoid being a victim of the Trump administration's growing blood lust". Benchmark U.S. crude fell 23 cents to $64.83 a barrel in electronic trading on the New York Mercantile Exchange.
The Dow sank 287 points on Tuesday, or 1.2%.
Beijing could also seek to make life hard for big U.S. companies that rely on the Chinese market for a big chunk of their revenue. Boeing dropped 3% and construction and mining equipment maker Caterpillar shed 2.7%. The Chinese Commerce Ministry responded that it would "strike back hard" with "measures that match the USA move in quantity and quality".
China warned it will take "qualitative" and "quantitative" measures if the US government publishes an additional list of tariffs on its products.
For some companies, the exposure to China is far higher: US tech giant Qualcomm generates 63 percent of its revenue in China and needs Chinese authorities to approve its takeover of semiconductor maker NXP.
The Federal Reserve had on Wednesday said that it would likely hike United States rates twice more this year and four times in 2019, highlighting an increasing divergence between the two central banks. -China Business Council. Parker suggested that such steps might include delaying or denying licenses required by US companies in China.
The spat between the two economic superpowers is already being felt in China. Virtually all economists agree that restricting trade has damaging economic consequences for all countries that employ such policies, but the scale and the scope of the losses are potentially huge, not just for the USA and China, but also for countries not directly involved. American officials said they would suspend threatened tariff increases on up to $150 billion of Chinese goods.
The White House said it would consult on tariffs on the other $16bn of products, and would apply these later.
The impact likely would be temporary as USA oil becomes less attractive to Chinese buyers.
He added he would identify an extra $200 billion of goods - for a possible total of $450 billion, or most Chinese imports - "if China increases its tariffs yet again". The White House is finalizing a list of $16 billion in additional goods it will sanction later.
China has hiked its list of U.S. goods on which it said it would slap tariffs six-fold from a version released in April, but the value was kept at US$50 billion, as some high-value items such as commercial aircraft were deleted.
"Dairy", Trump said. "Dairy, 275 per cent tariff".