China on Wednesday said tit-for-tat tariffs will "destroy" trade between the world's top two economies, after Washington fired the next shot in a ballooning trade war, readying fresh levies on Dollars 200 billion in Chinese goods.
Last Friday, the United States imposed 25 per cent tariffs on $US34 billion ($46 billion) of Chinese products, and Beijing responded by hitting the same amount of U.S. imports.
The tariffs will not be imposed until after a two-month period of public comment on the proposed list. This article is strictly for informational purposes only.
Experts have said that the outlook of the trade war depends on how China responds to the tariffs on its imports.
The additional USA tariffs, which will go through a two-month approval process including a public hearing, come after China retaliated in a tit-for-tat trade skirmish last week.
As for China, the additional tariffs will hit its export sector hard, IHS Markit's Asia-Pacific chief economist Rajiv Biswas said in a note. That raises the risk China could retaliate in other ways, such as placing restrictions on USA companies doing business in the country.
China's Commerce Ministry has vowed to retaliate to the countermove.
The "biggest trade war ever in economic history" between China and the United States officially started on July 6.
The US has ramped up its trade war with China, outlining a list of $200bn (£150bn) worth of additional products it plans to place tariffs on.
The new list of goods to face 10 percent punitive duties includes frozen meats, live and fresh fish and seafood, butter, onions, garlic and other vegetables, fruits, nuts, metals, and a massive list of chemicals, as well as tires, leather, fabrics, wood and papers.
Republican U.S. House of Representatives Speaker Paul Ryan accused China of unfair trade practices but added, "I don't think tariffs are the right way to go".
China's compliance with WTO guidelines lies at the heart of the conflict, notably over Beijing's alleged state support for purportedly private companies.
Pence cited several exporting opportunities that he said have improved during the Trump administration, including beef to China and poultry to South Korea.
"The President has broken his promise to bring 'maximum pain on China, minimum pain on consumers, ' and American families are the ones being punished", Hun Quach, RILA VP of worldwide trade, said in a statement.
"Tonight's announcement appears reckless and is not a targeted approach", said Senate Finance Chair Orrin Hatch in a statement.
They also said they remain open to working with China to try to resolve the dispute, but the response from Beijing so far has been unsatisfactory.
The Wall Street Journal, citing unnamed Chinese officials, said Beijing was considering holding up licenses for US companies, delaying approvals of mergers involving USA firms and stepping up border inspections of American goods.