United States officials released a list of thousands of Chinese imports the administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminium. Tesla is among companies hit by an additional 25 percent in import duties, imposed by Beijing in retaliation to a tariff hike by the Trump administration.
It also includes consumer goods ranging from auto tires, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, carpets, doors, bicycles, skis, golf bags, toilet paper and beauty products.
The Office of the U.S. Trade Representative proposed 10 percent tariffs Tuesday on a list of 6,031 Chinese product lines.
US Trade Representative Robert Lighthizer late Tuesday accused China of retaliating to its tariffs "without any global legal basis or justification".
"The ability to increase global resource allocation can effectively offset foreign trade risks", Hu was quoted as saying. Dow futures lost 0.9 percent and the broader S&P 500 futures shed 0.7 percent.
CURRENCIES: The dollar eased to 111.23 yen from 111.28 yen on Tuesday.
President Donald Trump vowed to hit back on a growing list of products after China retaliated in kind for the first round of 25 per cent tariffs on $34 billion worth of imports that Washington imposed last week. Before now, the administration had deliberately avoided imposing tariffs on consumer goods in order to spare US shoppers from direct economic pain.
The office will accept public comments and hold hearings on the plan august 20-23 before reaching a decision after august 31, according to a senior administration official who briefed reporters on condition of anonymity.
Stocks and commodities recovered slightly on Thursday as markets tried to consolidate from the previous session's steep losses when fears of an escalation in the U.S.
Senate Finance Committee Chairman Orrin Hatch said the announcement "appears reckless and is not a targeted approach".
While cranking up the tariff war, the U.S. has also indicated its willingness to talk. Imposing taxes on another $200 billion worth of products will raise the costs of every day goods for American families, farmers, ranchers, workers, and job creators. "Authoritative sources of the world economic circles have said that the irrational behavior of the U.S.is risky, hurts itself and others, and is discredited".
The survey showed that while US companies continue to face challenges in China, 34 percent of respondents felt Chinese government policies toward foreign companies had improved, up from 28 percent past year.
"Concerns over trade and trade wars are really having an adverse effect, less so on the US markets than the global markets, but it is certainly taking a bite".
The impact of tariffs imposed Friday on the world's second-largest economy should be limited, according to private sector analysts.
Indexes in Europe and Asia took steeper losses as investors anxious the worsening trade dispute will hamper the growth of the global economy. The policy of tit-for-tat tariffs will "destroy" trade between the world's top two economies, China's assistant minister of commerce, Li Chenggang, told a forum in Beijing.