While Donald Trump launched his latest tirade against the familiar Canadian targets of tariffs and dairy, nervous opposition MPs demanded answers on how to defend against the president's next expected attack - potentially crippling auto tariffs.
Commodities have also suffered because of the rising USA dollar following the Federal Reserve's decision to raise rates last week, he said.
"If the USA becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality", the Chinese statement added, according to the AP.
While we have been arguing for a "Grand Bargain" scenario since the US-China trade spat started, the recent development suggests we are moving more towards the "trade war" scenario.
Trump accused Beijing of being unwilling to resolve the dispute over complaints it steals or pressures foreign companies to hand over technology.
The administration also revived its complaints Tuesday about America's gaping trade deficit with China, which it says reflects an unfair trading relationship. "But the United States will no longer be taken advantage of on trade by China and other countries in the world". China's tariffs would target agricultural products, cars and seafood, among other items. Numerous new tariffs target Chinese tech products used in the vehicle industry and robotics. It said a decision would be announced later. With Canada, Mexico, the European Union and China all promising retaliatory measures at the same time, America's retailers, farmers, autoworkers and American employees throughout the global value chain are at risk. Initially, 545 United States products valued at $34bn will be targeted by China, mimicking the Trump administration's tariff rollout.
Beijing has shown to other countries that it can use wide-ranging tactics to mete out economic punishment.More news: Juan Carlos Osorio y su día después de vencer a Alemania
With the world's two largest economies on the brink of a full-fledged confrontation, spooking markets and worrying business leaders, Trump on Monday said he was pushing forward with fresh punitive measures over Beijing's "unacceptable" move to raise its own tariffs.
The Republican senator from Iowa, in a significant parting of ways with Trump, says the tariffs "are nothing more than a tax on Iowa farm families".
Companies also are watching the fate of ZTE Corp. He suggested China could take actions, beyond tariffs, to make life hard for Apple and other US companies.
The exchange of blows between Washington and Beijing has heightened fears of a protracted dispute that could hurt global growth and particularly Europe, given that Trump has signalled he wants to impose tariffs on automotive exports.
For months, the USA and China have been sparring over tariffs on goods exported from China to the US and vice versa. That would leave less than $100 billion in USA goods to subject to a tariff hike, far short of the $200 billion Trump is threatening. The Chinese government warned after another round of talks June 3 that it would discard those deals if the tariffs went ahead. "You don't know where the bottom is", said David Dai, general manager of Shanghai Wisdom Investment Co Ltd.
Asian trade-reliant economies and companies plugged into China's supply chains are anxious that they will suffer collateral damage if world trade slows down, hurting global growth and dampening business confidence.
Other countries have learned from Japan's experience, Huang said, alluding to the Asian giant's historical trade tensions with the U.S., which cooled off only after Tokyo accepted quotas on exports to the United States, reduced its import tariffs and allowed its currency to appreciate.