The new tariff threat marks the latest escalation in the ongoing trade dispute between Washington and Beijing.
In an official statement, Trump said that these new tariffs would be in retaliation for China threatening to impose retaliatory tariffs on US goods in response to the last round of tariffs imposed on China by the U.S.
Mr. Trump said that if China responds to this fresh round of tariffs, then he will move to counter "by pursuing additional tariffs on another $200 billion of goods".
-China dispute sent global stock markets skidding and weakened both the dollar and the Chinese yuan on Tuesday. Shanghai stocks plunged to two-year lows.
United States stocks stumbled early Tuesday, the morning after President Donald Trump threatened an all-out trade war with China.
China's commerce ministry condemned the announcement, saying the USA was engaging in a "practice of extreme pressure and blackmail". "The United States initiated a trade war and violated the laws of the market". The US Chamber of Commerce, a powerful pro-business lobbying group that historically supports Republicans, has condemned US tariffs against China.
USA politics may restrain Trump.
If Trump really meant to launch a trade war, the last thing on his mind would be saving ZTE's 70,000 Chinese jobs.
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The White House says the US can withstand trade tensions.
Washington and Beijing appeared increasingly headed toward open trade conflict after several rounds of talks failed to resolve USA complaints over Chinese industrial policies, lack of market access in China and a $375 billion US trade deficit.
The prospect of a trade war is particularly risky when it comes to China, the U.S.' largest goods trading partner. He did not say when the new target list would be unveiled. "A full-on trade war would be where we are slapping tariffs on a wide range of goods and it is really beginning to impede trade not only between our two countries, but trade with the world as well".
President Donald Trump pumps his fist as he leaves a meeting Monday in the East Room of the White House in Washington. The official Xinhua news agency said China would impose 25 percent tariffs on 659 United States products, ranging from soybeans and autos to seafood. The country's tariffs on $34 billion in goods announced on June 15 targeted industries in politically sensitive places: soybean farmers in Iowa, U.S. automakers in the Rust Belt and orange juice in Florida.
"The trade relationship between the United States and China must be much more equitable", Trump said. "It is very unfortunate that instead of eliminating these unfair trading practices, China said that it intends to impose unjustified tariffs targeting US workers, farmers, ranchers and businesses".
The problem for Beijing now, however, is that by raising the tariff stakes to 10 per cent on US$200 billion worth of goods, Trump has put any like for like retaliatory move out of China's reach, as it simply does not buy that amount of American goods.
"If [Trump] continues to double down on trade with China.it may dampen the euphoria - and predictability - that corporate America enjoyed after last year's tax cuts and regulatory reform".
United States tariffs that affect more than 800 Chinese products worth $34bn in annual trade are due to come into effect on 6 July.