News of the tariffs was initially reported by Bloomberg. The officials spoke on condition of anonymity in order to discuss the matter ahead of a formal announcement. Goods tied to Beijing's ambitious "Made in China 2025" plan will be included.
Washington has also completed a second list of possible tariffs on another $100 billion in Chinese goods, in the expectation that China will respond to the initial US tariff list in kind, sources told Reuters.
By plowing ahead with tariffs against China, the Trump administration would undermine efforts by the world's two biggest economies to avoid a trade war that the International Monetary Fund has warned could undermine global growth.
"If the USA side adopts unilateral protectionist measures and damages China's interests, we will immediately react and take necessary measures to firmly safeguard our legitimate rights and interests", foreign ministry spokesperson Geng Shuang said in Beijing.
Beijing and Washington have held three rounds of high-level talks since early May that have yet to yield a compromise, with Mr Trump unmoved by a Chinese offer to buy an additional US$70 billion worth of United States farm and energy products and other goods, people familiar with the matter have said.
Trump no longer believes that Beijing's influence over North Korea is a compelling reason to ease up on trade talks now that his administration has opened up a direct line of communication with the nuclear-armed country, the first administration official said.
"The US-China trade conflict appears to be entering a new and potentially damaging phase", Chief Asia Economist Tom Orlik wrote in a note.
President Donald Trump has vowed to clamp down on what he calls China's unfair trade practices.
On Thursday, China reiterated its preference for dialogue to resolve differences, but said it was ready to respond if Trump moved forward with tariffs.More news: Donald Trump talks about G7 post Singapore summit
Wall Street has viewed the escalating trade tensions with wariness, fearful that they could strangle the economic growth achieved during Trump's watch and undermine the benefits of the tax cuts he signed into law previous year.
In the trade fight, Bannon said, Trump has converted three major tools that "the American elites considered off the table" namely, the use of tariffs, the technology investigation of China and penalties on Chinese telecom giant ZTE.
'Those are all historic ingredients for an economic slowdown'. "This situation is no longer sustainable", he said.
Spain's newly appointed agricultural minister, Luis Planas, also opposed the tariff's impact, saying it was unjust.
The US tariffs package reportedly includes 800 product categories, down from a previously approved 1,300, an administration official and an industry source familiar with the list told Reuters.
The trade representative office has held public hearings on the list of 1,300 categories of products to see whether duties on any of the goods would unduly harm USA consumers and businesses.
Trump's approval in this regard followed a 90-minute meeting he had with Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin and US Trade Representatives Robert Lighthizer yesterday. China has targeted $50 billion in U.S. products for potential retaliation.
"If and when tariffs are implemented, China has already outlined its retaliation in the form of a 25 percent tariff on 106 US goods worth $50 billion", B. Riley FBR's Salisbury wrote.
The US president has said that he wants them to be imposed by the end of the month.