China slammed the US threat to expand tariff hikes to imports including apples, fish sticks and French doors as a "totally unacceptable" escalation of their trade battle and vowed Wednesday to protect its "core interests".
"Unilateral actions that alienate long-standing US allies and close off the USA market to the rest of the world are not a recipe for economic growth and prosperity and are very unlikely to change China's unfair practices", ACC said.
The United States is already working on a second wave of tariffs on Chinese goods worth $16 billion.
The foreign ministry described Washington's threats as "typical bullying" and said China needed to counter-attack to protect its interests.
"The trade dispute between China and the U.S.is a big deal, and to the extent that it goes to a full scale war that potentially is recessionary basically for the global economy so we have to be careful here", Tal said.
More than 6,000 items could be affected - including burglar alarms, auto tyres, handbags, baseball gloves, carpets, toilet paper, dog food, and hundreds of food products.
Washington, DC, July 11, 2018-Flooring is included on a list of products imported from China that could face tariffs of 10% from the U.S.
"Rather than address our legitimate concerns, China has begun to retaliate against United States products", Lighthizer said in a statement.
It also said that China would have to respond to the U.S. actions.
The American announcement came Tuesday - days after the US began adding 25 percent tariffs on $34 billion of Chinese goods. China immediately responded with $34 billion worth of tariffs on American-made goods in retaliation. The move made good on the president's threat to respond to China's retaliation for the initial USA tariffs on $34 billion in Chinese goods, which went into effect on Friday.
President Donald Trump last month threatened additional tariffs against China if it retaliated. "I don't want it to be detrimental to other people's interest either but certainly our interests are important", Senate Finance chairman Orrin Hatch, R-Utah, told reporters Wednesday morning.
The U.S. Chamber of Commerce has supported Trump's domestic tax cuts and efforts to reduce regulation of businesses, but does not back Trump's aggressive tariff policies.
"Tariffs on such a broad scope of products make it inconceivable that American consumers will dodge this tax increase as prices of everyday products will be forced to rise", David French, the group's senior vice president for government relations, said in a statement.
National Retail Federation senior Vice President for Government Relations David French said the move "doubles down on a reckless strategy that will boomerang back to harm USA families and workers".
The Retail Industry Leaders Association (RILA) was quick to condemn the proposal, saying it will punish American consumers.
That prompted fears it might go beyond matching Washington's duty increases by disrupting operations for U.S. companies in China.
The $US200 billion far exceeds the total value of goods China imports from the US, which means Beijing may need to think of creative ways to respond to such measures.
The US is levying these tariffs because of what it describes as China's unfair trade practices, including forcing US companies operating in China to transfer technology to the Chinese.
Head of U.S. equity strategy at JP Morgan, Dubravko Lakos-Bujas, said: "Despite trade headlines, S&P 500 companies should deliver robust earnings on above-trend revenue growth and sharply higher margins".