This comes on top of a 25% tariff on $34 billion worth of imports from China that came into effect last week. The Chinese government said the U.S. move was "totally unacceptable" and it is highly likely that a new retaliatory response will be prepared in Beijing, raising the potential harm to both countries' economies.
A Commerce Ministry statement said Beijing will use revenue from the higher import duties to "alleviate the impact on enterprises and employees" but gave no details.
The foreign ministry described Washington's threats as "typical bullying" and said China needed to counter-attack to protect its interests. The S&P 500 index rose 0.3 percent to 2,793.84 on Tuesday, climbing to its highest level since February 1.
The USTR will accept public comments and hold hearings august 20-23 before reaching a decision after august 31, according to a senior USA official who briefed reporters on condition of anonymity.
Concerns about an escalating U.S.
The trade confrontation between Washington and Beijing has been escalating for months, despite Trump's repeated statements that he has a good relationship with China's President Xi Jinping. The Trump administration escalated its fight on June 6 when it imposed tariffs on US$34 billion worth of Chinese goods and threatened duties on as much as US$500 billion worth of products.
It's a potential outcome of a new round of tariffs the Trump administration is proposing to slap on Chinese imports as soon as September. And American consumers will have to pay the high price because United States firms will have to buy them despite the high tariffs.
CURRENCIES: The dollar eased to 111.23 yen from 111.28 yen on Tuesday.
The dollar was buoyant, supported by mounting trade tensions and Wednesday's strong US inflation data.
Senate Finance Committee Chairman Orrin Hatch said the announcement "appears reckless and is not a targeted approach".
"We can not turn a blind eye to China's mercantilist trade practices, but this action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy".
Washington chose to impose the extra tariffs after efforts to negotiate a solution to the dispute failed to reach an agreement, senior administration officials said on Tuesday.
The survey showed that while USA companies continue to face challenges in China, 34 percent of respondents felt Chinese government policies toward foreign companies had improved, up from 28 percent a year ago.
China's exports have mushroomed since it joined the World Trade Organization in 2001, making it the world's second-largest economy and prompting widening criticism in recent years from trading partners that it has unfairly used global trade rules to its advantage. "Regrettably, the USA side did not honour its words, chopping and changing all the time".
The European Union Chamber of Commerce in China said this week its member companies are rearranging the global flow of their goods to make sure any bound for the United States don't pass through China. During a visit to Germany this week by Chinese Premier Keqiang Li, the countries signed business deals worth more than $23 billion.
"China made great efforts and demonstrated utmost sincerity to stabilize trade relations with the U.S.", Wang said.