China specifically stated that it will impose a 25% tariff on imports of US soybeans, a tax that could be devastating to growers of the number one USA agricultural export, with sales to China previous year totaling $14 billion, if the USA imposes tariffs.
Renewed worries about an escalating trade conflict sent shares in Chinese telecoms gear maker ZTE Corp tumbling on Friday. Trump shocked the world and fellow members of the G7 when he made a decision to impose tariffs on aluminium and steel on the US's closest neighbour, Canada, following a public spat with its prime minister Justin Trudeau, who also vowed to respond. In Spain's Andalusia region, olive producers are reporting damage to their businesses already, in relation to the tariffs.
Wang said China and the United States have wide and important common interests.
The US imported $505 billion of goods from China past year and exported about $130 billion, leaving a 2017 trade deficit of $376 billion, according to US government figures.
The list of products issued by USTR covers 1,102 separate U.S. tariff lines valued at approximately $50 billion in 2018 trade values.
"The United States has kept changing its mind and now launched a trade war", China's Commerce Ministry said in a statement.
"We in general support this. but specifics we will discuss with the ministers in a week", Novak said, adding that one option would involve gradually raising output by 1.5 million barrels per day (bpd), possibly starting from July 1.
Trump has repeatedly accused Beijing of putting pressure on USA firms to transfer technology to Chinese competitors. "This situation is no longer sustainable", he said. The spokesman didn't mention Washington and Trump's threat of tariff hikes. That's quite a reversal after Trump's May 21 tweet touting an emerging trade deal that would see China "buy massive amounts of ADDITIONAL Farm/Agricultural products" from the U.S.More news: Putin hails outcome of Trump’s meeting with North Korean leader
"Manufacturers certainly have concerns that tariffs will cause more problems than they solve, but we also recognize that the administration may intend to use them as a negotiating tactic to bring China to the table and achieve larger goals", Timmons said.
He first announced that the United States would impose trade penalties on about $50 billion of Chinese goods in March.
While the Trump administration has insisted that the enforcement action against Chinese communications equipment supplier ZTE was separate from the trade negotiation, it's not clear that Chinese President Xi Jinping agreed.
China said it would retaliate against the tariffs.
Canada, the European Union and South Korea are now subject to more tariffs than the U.S.'s traditional adversaries, according to calculations from the Council on Foreign Relations.
The announcement caps months of sometimes fraught shuttle diplomacy between Washington and Beijing, in which Chinese offers to purchase more US goods failed to assuage Trump's grievances over the soaring US-China trade imbalance and Beijing's industrial development policies.
Mnuchin subsequently declared the trade war "on hold".
The administration is also working on proposed Chinese investment restrictions by June 30.
"From this perspective, the impact on China could, ironically, be positive as the US aggressiveness is only going to push China further in its race, accelerate acquisition and own development of technology to move up the ladder even faster than previously planned".