The Office of the U.S. Trade Representative will accept public comments and hold hearings on the plan August 20-23 before reaching a decision after August 31, according to a senior administration official. The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other high-tech items, but it omitted some high-profile products like mobile phones.
The USTR, the federal agency that oversees worldwide trade policy and negotiations, said it was responding to Beijing's decision to retaliate instead of changing its policies.
They also said they remain open to working with China to try to resolve the dispute, but the response from Beijing so far has been unsatisfactory.
"The trade situation is worrisome but nothing more is going to happen right away".
United States policy "actually interferes with the process of economic globalization" and "damages the world economic order", charged Li. In fact, China is America's second-largest crude oil customer after Canada and is also one of the biggest importers of USA propane and liquefied natural gas (LNG). Chinese diplomats have sought to build alliances in Washington while making the case for how U.S. investment in China is mutually beneficial for the two countries.
"China has no option but to fight fire with fire". The official added that China has warned the US that future actions would be met with "economic attacks" on American markets. "There is no justification for such action".
Oil prices were also hit by the trade war concerns.
USA stocks fell on Wednesday, breaking a four-session streak of gains after Washington's threat to impose tariffs on an additional $200 billion worth of Chinese goods fanned trade war fears, while a sharp drop in oil prices hit energy shares. China's yuan meanwhile dropped 0.45 per cent against the dollar to move back towards an 11-month low plumbed last week.
National Retail Federation senior Vice President for Government Relations David French said the move "doubles down on a reckless strategy that will boomerang back to harm US families and workers".
"Tariffs on such a broad scope of products make it inconceivable that American consumers will dodge this tax increase as prices of everyday products will be forced to rise", David French, the group's senior vice president for government relations, said in a statement. 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.
The Retail Industry Leaders Association (RILA) was quick to condemn the proposal, saying it will punish American consumers. The index had gained for the past two sessions, having enjoyed a lull from the trade war fears that lashed global markets last week.
Global markets in turmoil as Trump intensifies trade war once again.
The US complains that China uses predatory practices in a push to challenge American technological dominance.