China confirmed that it will impose 25 percent tariffs on an additional $16 billion worth of imports from the U.S. from August 23, matching an earlier move from Washington in another ratchet higher for the trade war between the two nations.
The U.S. action that prompted the Chinese retaliation was the latest by President Donald Trump to put pressure on China to negotiate trade concessions, after Washington imposed tariffs on $34 billion USA in goods last month.
The US has said the tariffs are meant to penalise China for "unfair" trade practices, such as rules that compel companies in certain sectors to take on local partners if they want to do business in the country.
It is the second round of duties imposed by the countries as Washington and Beijing exchange tit-for-tat measures in an escalating trade war.
All in all, China's trade surplus with the USA shrank to $28.08 billion in July against $28.97 billion in the previous month. China has responded with retaliatory tariffs of its own.
The move is the latest escalation of President Donald Trump's trade war with China.
Crude shipments came in at 36.02 million tonnes last month, or 8.48 million barrels per day, up from 8.18 million bpd a year ago, and just up on June's 8.36 million bpd, data from the General Administration of Customs showed.
However, the U.S. imports far more from China than it exports to it, meaning Beijing may at some point need to look for other means of retaliation. That was off slightly from June's 13.6% rate but still stronger than China's global export growth.
The latest commentary from state media on Wednesday took a softer line after resorting to personal attacks against Trump earlier in the week, saying China could get through the storm but refrained from directly mentioning the US President.
The United States published its final list of goods subject to the new tariffs on Tuesday.
China has already retaliated against the United States with its own tariffs and proposed others if Washington goes ahead with all its threats.
The list of U.S. imports affected by the taxes includes coal, oil, chemicals and some medical equipment.
The latest $16 billion list from the United States will hit semiconductors from China, even though numerous basic chips in these products originate from the United States, Taiwan or South Korea.
The trade representative said the tariffs were a response to an investigation, released this year, which found China's policies on technology transfer, intellectual property and innovation were unreasonable and discriminatory, and placed an unfair burden USA commerce.