China unveils list of U.S. goods that may face tariff hikes

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"In light of China's unfair retaliation", Trump said he had instructed trade officials to "consider whether $100bn of additional tariffs would be appropriate".

Trump said it was time the US did something to change the US-China business terms. "He's threatening to light American agriculture on fire", Sasse added.

Among the low points: The US national security strategy in December naming China, along with Russian Federation, as threatening American interests; the US increasing naval operations in the South China Sea; and legislation signed by Mr Trump last month calling for Cabinet-level official visits to Taiwan, which is regarded by Beijing as part of China.

U.S. stock index futures fell in reaction to Trump's latest statement.

But Asian markets flitted in and out of positive territory on Friday, suggesting investors were not necessarily concerned by the latest developments.

Some of the largest American brands, from Apple to Boeing to Kentucky Fried Chicken, are increasingly intertwined with the Chinese market.

The tit-for-tat escalation of tariff announcements, which have stirred fears that trade unfolded surprisingly rapidly.

The Chemical Industry Association of Canada said the country's producers will likely suffer a "secondary impact" by seeing more US products in markets where they compete.

Shares in USA aerospace giant Boeing Co were last down 2.5 percent making it one of the biggest drags on the S&P 500 though it was not immediately clear how much the tariffs would affect Boeing's newer products.

Monica de Bolle, senior fellow at the Peterson Institute for International Economics, said Beijing was likely to retaliate again by targeting United States exports of soybeans and Boeing aircraft - two politically sensitive sectors highly dependent on the Chinese market.

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"It is certain that, over the 30-day period of comment on President Trump's proposed China tariffs, the administration will be inundated with visits from American planters, manufacturers, financial service companies and local governments - many in Republican districts - who understand that China is a bad actor, but don't want their own livelihoods harmed in the coming battles", he says.

The retaliatory tariffs have left Republican lawmakers from Western and Midwestern states fearful of a big hit to USA farming exporters.

"Hopefully the President is just blowing off steam again but, if he's even half-serious, this is nuts", Sen. So they pay 2.5; we pay 25. "This is the dumbest possible way to do this", said the lawmaker from the farm-belt state of Nebraska.

In Moscow yesterday, Chinese foreign minister Wang Yi also accused the United States of picking the "wrong target" with its tariffs against China.

Last month, Washington filed a World Trade Organization complaint over Chinese policy it said limits the ability of foreign companies to control and profit from their technology. Overall, China's trade balance for 2017 was a surplus of $422.5 billion. Trump accused China of continued "misconduct" and "unfair retaliation".

A senior U.S. official who requested anonymity told Reuters no formal negotiating sessions had yet been set but that the United States was willing to negotiate with China.

The USTR's "Section 301" investigation, which authorizes the use of tariffs against Beijing, alleges that the Chinese government has been systematically misappropriating US intellectual property through joint venture requirements that often can not be negotiated without technology transfers.

"U.S. oil inventories remain a volatile gauge, but they still provide a good litmus test for the short-term", Innes said.

"What we're talking about on both sides is a fraction of 1 percent of both economies", Ross said.

They were announced after the Trump administration unveiled a list of 1,300 Chinese products to be targeted by tariffs including from the aerospace, information and communication technology, robotics, and machinery industries.