China vows to 'fight back' after USA threaten $200bn tariffs on goods

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"China is shocked at the U.S. action", the Commerce Ministry said in a statement on its website Wednesday.

China is shocked by what the United States did... the Chinese government will, as always, be forced to take necessary countermeasures.

By expanding the list, the administration is beginning to hit products that US households buy, including such things as electric lamps and fish sticks. The list amounts to $200 billion in products in total and also includes chemicals, steel, aluminum, TV components and many consumer products, including food and clothing.

The prospect of a 10 percent tariff on Chinese furniture imports sent shares of online home store WayFair Inc (W.N) down 2.9 percent, while shares of Restoration Hardware (RH.N) tumbled 4.3 percent.

A possible second round of tariff hikes announced Tuesday by the US Trade Representative targets a US$200 billion list of Chinese goods.

Trade wars are "even more costly for the aggressor than military aggression usually is and the effects of an attack are even less predictable and controllable than traditional war", he warned. That means China's imports of U.S. goods are so small that Beijing "cannot match fresh United States tariffs", said Vishnu Varathan of Mizuho Bank in a report.

"We will remain vigilant in defending the ability of our workers and businesses to compete on a fair and reciprocal basis", he said. They have given no indication when they might meet again.

Trade talks between the U.S.and China come to a halt as President Trump threatens to impose new tariffs on the Asian nation.

Investors fear an escalating trade war between the world's two biggest economies could hit global growth.

"We have been very clear and detailed regarding the specific changes China should undertake".

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The sharp tone of Strzok's statement set the stage for a contentious hearing following hours of closed-door questioning last week. Some Democrats applauded after he finished speaking.

US Senate Finance Committee Chairman Orrin Hatch described the move was "reckless".

The new list-targeted at China's key manufacturing export industries-contains over 6,000 products, including fruits, vegetables, live eels, feathers and beaver heads as well as hi-tech minerals that the US needs.

Last year, more USA crude oil was sent to China than any other destination except Canada, the EIA said in an analysis on Tuesday.

The president last month asked the U.S. Trade Representative's office to identify US$200 billion of Chinese goods that could be hit with 10 percent tariffs.

The preliminary list of new tariffs comes days after the USA initiated 25 percent tariffs on $34 billion in Chinese goods. The first round of tariffs covered Chinese products ranging from farming plows to machine tools and communications satellites.

For companies such as Starbucks and Apple, which rely on the Chinese market, the consequences could be devastating.

The eventual goal is to impose tariffs on 40 percent of Chinese imports, the same proportion of U.S. goods hit by Beijing's retaliation, an official told reporters.

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.

In fact, this is part of the White House's justification for the trade war: China essentially forces foreign companies to hand over trade secrets and intellectual property to Chinese state-run enterprises as the price for doing business there. Having refused to give the European Union a carve out from the tariffs on steel and aluminium, the USA has begun an investigation into auto imports to determine if increased tariffs should be imposed on the grounds of "national security".

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