Foreign Secretary Dominic Raab will make a statement on Tuesday in the House of Commons on the government's response to allegations of forced labour in China's Xinjiang province, home to about 12 million Uighur Muslims, the report added.
The agency, which is part of the Department of Homeland Security (DHS), estimates that about US$9 billion of cotton products and US$10 million worth of tomato products were imported from China into the United States in the past year.
The British government will fine companies which hide connections to China's Xinjiang region where Uyghurs and other minorities are allegedly subject to forced labor, under a raft of new measures.
The move is the latest by the Trump administration in its final days to harden the US position against Beijing, erecting economic penalties that would make it more hard for president-elect Joe Biden to ease US-China tensions after he takes office on Jan 20.
Chinese Foreign Ministry spokesperson Zhao Lijian said China would "take all necessary measures to defend national interests and dignity and firmly safeguard its sovereign, security and development interests".
The move follows a ban on cotton products from China's largest producer, the Xinjiang Production and Construction Corps. USA apparel makers have in the past criticized a broader ban as impossible to enforce.
Beijing has denied accusations of mistreatment, and says it's providing vocational training and helping to deradicalize segments of the population to combat alleged Islamic terrorism and violence.
UK Foreign Secretary Dominic Raab on Tuesday announced the new measures, which the Foreign Office says are created to ensure that all British organizations "are not complicit in, nor profiting from, the human rights violations in Xinjiang".