Oxford Economics estimates that if President Donald Trump imposed the $200 billion in duties that he threatened to implement late Monday, and China responded in kind, usa growth could slow by 0.3 percentage point next year.
"This practice of extreme pressure and blackmail deviates from the consensus reached by two parties through many negotiations, and it also disappointed the global community", said a forcefully worded statement from the Commerce Ministry.
The dollar fell against the yen in early Asian trade on Tuesday after U.S. President Donald Trump's threats of more tariffs on China raised worries about an escalating trade war between the world's two largest economies.
"If the USA becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality", the Chinese Commerce Ministry said.
In response, China announced tariffs on $34bn of United States goods including agricultural products, cars and marine products which will also take effect from 6 July.
"This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage", the White House said, citing a "$376 billion trade imbalance".More news: Cleveland Cavaliers Interested In Trading For Kemba Walker
The US wants China to stop practices that allegedly encourage transfer of intellectual property - design and product ideas - to Chinese companies, such as requirements that foreign firms share ownership with local partners to access the Chinese market.
So China is threatening "qualitative measures" (质量型的措施 zhìliàng xíng de cuòshī), in addition to quantitative ones - i.e., tariffs - according to a statement (in Chinese, in English) by the Chinese Ministry of Commerce.
President Donald Trump announced Monday that he was considering a 10 percent tariff on $200 billion in additional imports from China. But last week, Trump unveiled a revised list that included several categories of chips, raising fears that tariffs could impact the United States technology sector.
"Everyone knows ... China is the main perpetrator", he said. China is retaliating by raising import duties on US$34 billion worth of American goods, including soybeans, electric cars and whiskey. Cook also said that the trade deficit with China is overstated due to flaws in the way it is calculated. It also scrapped agreements to narrow China's trade surplus with the United States by purchasing more American farm goods, natural gas and other products. In 2017, China imported 60 percent of total US soybean exports, representing almost 1 in 3 rows of harvested soybeans, with a value of $14 billion.
WATCH: Freeland "strong, measured" retaliatory tariffs to be imposed on U.S. He notes that the USA imports more from China than China imports from the U.S. "We will continue using all available tools to create a better and fairer trading system for all Americans". While the previous round took aim at Chinese industrial and commercial goods, an additional round of $200 billion in targeted tariffs would likely affect high-value consumer goods like shoes, furniture and consumer electronics.