Regulators threatened "necessary countermeasures" in response to Trump's increase in tariffs Friday on $200 billion of Chinese imports.
The White House and US Trade Representative's office did not immediately return a request for comment.
Congressman Warren Davidson sought to impose sanctions on China on Sunday for walking away from good faith negotiations. "Maybe something will happen". The tariffs will be imposed on some of the goods listed on a previous retaliation list from 2018.
According to the Chinese Finance Ministry, 25, 20, and 10 percent import duties for different groups of U.S. goods will come into effect on 1 June.
The Dow Jones Industrial Average plummeted more than 470 points to start Monday trading, as traders reacted to an increasingly aggressive U.S. China's yuan currency fell to its lowest level since December and oil futures slumped.
Vice Premier Liu He, China's top economic adviser, sought to defend the changes in talks with senior US officials in Washington on Thursday and Friday, arguing that China could accomplish the policy changes through decrees issued by its State Council, or cabinet, sources familiar with the talks said. The U.S. and other trading partners say such efforts violate Beijing's free-trade commitments.
Beijing wanted to delete prior commitments that Chinese laws would be changed to enact new policies on issues from intellectual property protection to forced technology transfers. However, the trade talks suffered a major setback last week when China proposed extensive revisions to a draft agreement.
Larry Kudlow, the chairman of the president's National Economic Council, conceded Sunday in a TV interview that tariff costs are generally passed through in the form of higher prices for customers.
The "points" are a reference to the percentage increase in tariffs on Chinese goods, from 4 per cent to 25 per cent, compared to a more modest tariff hike the Chinese have recently enforced in the other direction. And it could shave Chinese growth to around 5%.
The Trump administration has said that more details are coming this week regarding the preparations for slapping tariffs on an additional $267 billion worth of Chinese shipments, a move which would effectively see all imports from the country subjected to the punitive duties. "Remember, they broke the deal with us and tried to renegotiate", Trump said justifying his decision to impose a hefty tax on Chinese products.
"The selloff is a reflection that trade talks are in worse shape than people were expecting", said Willie Delwiche, investment strategist at Baird in Milwaukee.
The announcement followed an increase of US duties on $200 billion of Chinese imports to 25% from 10% in the increasingly bitter dispute.
China on Monday raised tariffs on hundreds of USA goods, retaliating against the Trump administration last week more than doubling tariffs on Chinese imports. "But they have to react".
Trump has repeatedly framed the tariffs as primarily hurting China.
But actually it's American businesses that will pay the tariffs, and in many cases, pass the expense on to their American customers.