Companies and trade groups in the United States and China have expressed concern over how the escalating trade spat between the world's two biggest economies could affect operations.
Some companies that source materials from China could eventually look for suppliers in other Asian countries with low labor costs including Vietnam, the Philippines and Bangladesh, but many will take a wait-and-see approach because it takes times to rewire supply chains, said Erik Lundh, an economist specializing in China for The Conference Board, a major business group.
"We deeply regret that the United States has disregarded the consensus it has formed and is fickle, provoking a trade war", the Chinese statement said. After some skirmishes related to washing-machine and solar-panel tariffs, Trump struck the first direct blow at China in March with the announcement of tariffs on Chinese goods.
The media response came as China announced tariffs on $34bn of U.S. goods including agricultural products, cars and marine products which will also take effect from 6 July.
The revisions removed 515 items from an initial list published in early April following a public comment period, bringing the list to 818 product lines.
About 500 goods initially targeted for sanctions in March were stricken from the list at the behest of U.S. firms that rely on imports.
"There is very little chance that this three-week delay to July 6 will allow for a last-ditch effort to avert tariffs", said economists including Michael Hirson, Asia director at Eurasia Group in NY.
The State Council said another 114 items will be subject to tariffs at a later date, the news agency said.
According to the World Trade Organization (WTO), the US imposes, on average, lower tariffs than our closest trading partners.More news: Asian markets lower after hawkish Fed, fresh trade war fears
The government went on: "In this day and age, launching a trade war is not in the interest of the world".
U.S. restrictions will target China's technical industries, including aerospace, robotics, and auto engineering.
It's the latest round of tariffs imposed by the Trump administration, which hit US allies Mexico, Canada and the European Union with a round of taxes on steel and aluminum imports in May.
China's retaliatory tariffs will follow a similar schedule.
Trump recently hit United States allies including the European Union, Canada, and Mexico with tariffs on steel and aluminum imports. "China has, for example, always been engaging in several unfair practices related to the acquisition of American intellectual property and technology", Trump said in the statement issued by the White House. Trump shocked the world and fellow members of the G7 when he chose 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 general terms, they are products containing "industrially significant technologies", like aerospace, robotics and automobiles.
If China retaliates, as it has already pledged to do, the U.S. will impose even more tariffs, Mr Trump warned.
The prospect of a trade world between the world's two largest economies is back in the spotlight as Donald Trump is expected to say today that he will press ahead with tariffs on $50bn of Chinese imports.
"Trade conflict. will lead to serious consequences for economic growth and job creation and hurt those that are most vulnerable across the globe", said Devry Boughner Vorwerk, a vice president at Cargill. Benchmark 10-year notes last rose 7/32 in price to yield 2.9223 percent, from 2.946 percent late on Thursday.