Vice Premier Liu He told Mnuchin in a phone call that the order Trump signed Thursday violates global trade rules, China's official Xinhua News Agency reported.
Technology companies and banks sustained some of the biggest losses. Most traditional industry stocks fell by less than 1 percent. Since consumer goods account for a large chunk of exports from China to the US, some Chinese manufacturers are preparing for the worst.
The prospect of swelling Treasury issuance helped drive benchmark 10-year yields to a four-year high of 2.95 percent in February.
China is strongly disappointed and firmly opposes the unilateral trade protectionist action introduced by the Trump administration against Chinese imports, said the Chinese Embassy in the United States on Thursday. European and U.S. trade officials said this week they were beginning talks to reach a compromise.
China plans to levy 15 per cent tariffs on 120 types of United States products, including fruit, wine and steel pipes, worth US$977 million.
The U.S. tariff hike on steel and aluminum imports also has irked Japan, America's closest ally in Asia.
If the latest proposed tariffs appear measured compared to Mr. Trump's initial rhetoric, how far China is willing to go to defend itself is hard to predict.
Low-priced manufacturing in mainland China has enabled USA technology brands to take the global market by storm and rake in massive profits, said an executive at a Chinese unit of Hon Hai, also known as Foxconn.
Senior White House economic advisor Everett Eissenstat said the new duties would target sectors where "China has sought to acquire an advantage through the unfair acquisition or forced technology transfer from United States companies". Apple (AAPL), which contracts out global iPhone production in China and sells a lot of phones in the country, is also potentially vulnerable in a trade war.
Late Thursday, China issued a response through its US embassy: "China does not want a trade war with anyone", the statement said.
A deal for the latter will not come in the next 45 days before the yet-to-be published USA tariff list becomes effective.
A U.S. Navy destroyer also carried out a "freedom of navigation" operation on Friday, coming within 12 nautical miles of an artificial island built by China in the South China Sea, U.S. officials told Reuters, a move likely to further anger Beijing. -China relations. It followed a seven-month investigation by USTR into allegations China violates USA intellectual property, under the seldom-used section 301 of the 1974 Trade Act. It rejected Trump's contention they are needed to protect USA national security.
China is preparing to enforce its own tariffs.More news: China can't be seen as weak against `bully' Trump, says Stiglitz
Donald Trump has paved the way for a possible trade war with Economic rivals China by ratifying a decision to impose tariffs on Chinese products.
The Trump administration is framing the move as a major turning point in U.S.
The official also said China had failed to fulfil a 100-day plan agreed by the two countries previous year to further open China's financial services and agriculture markets.
The president is also asking Treasury Secretary Steven Mnuchin to come up with a list of restrictions on Chinese investment.
The threat of steel and aluminum tariffs is back on.
A top Treasury official corrected himself this month after saying the USA had ended the formal economic talks with China.
The statement accused the US of restricting imports under "the excuse of national security", which has "gravely damaged the multilateral trade system represented by the WTO" and "severely disrupted the normal global trade order".
China ranks ahead of Japan as the biggest holder of U.S. government debt.
US diplomat Jason Mack called for a vote on China's text on "mutually beneficial cooperation", which was then easily adopted by the 47-member forum.
The last 24 hours have seen a significant ratcheting up in trade tensions between the United States and China.
Chinese officials are trying to figure out how to address US concerns, said Jake Parker, vice president for China operations of the U.S.
China announced on Friday that it was considering higher tariffs for imported USA products worth about $3 billion to balance losses caused by the U.S. tariffs on steel and aluminium imports from Beijing. Trump declared that China was responsible for thousands of lost American jobs and billions in lost revenues.