China was responding after the U.S. kicked off what has become a round of tit-for-tat tariffs that is threatening to develop into a trade war between the world's two biggest economies.
Trump said he hoped the USA could work out a trade agreement with Canada, saying the two countries had a good relationship but that Americans were being taken advantage of. It called Mr. Trump's tariff threat an "act of extreme pressure and blackmail" that "deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the global community".
An import duty would make US oil less competitive than other crudes, nearly certainly resulting in a sharp fall of Chinese purchases, forcing USA oil firms to find other buyers.
-China dispute sent global stock markets skidding and weakened both the dollar and the Chinese yuan on Tuesday. It said with retaliatory tariffs imposed by American trading partners added in, the total rises to $181 billion, or 1 percent of global trade.
The Business Roundtable, representing companies with more than $7 trillion in annual revenue, said the administration's feud with China "will only make it harder to achieve a fair and level playing field for American companies to compete in China".
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China said it would impose such tariffs following Washington's 25 percent tariff on Chinese goods worth 50 billion dollars.
On Monday, the Trump administration responded with an unprecedented threat to levy a 10 percent tariff on $200 billion in Chinese products - a move that would put a large share of the $505 billion in products that the United States imports from China under tariffs. Starting on June 1, the Americans imposed import taxes of 25 per cent on Canadian steel and 10 per cent on Canadian aluminum, using a national security provision of US trade law that Prime Minister Justin Trudeau and Ms. Freeland called ridiculous and insulting treatment of a close military ally. "We appreciate it. They fought World War I with us, and we appreciate it, but we're protecting each other", he said before lashing out at NAFTA and Canadian tariffs on United States dairy products.
Last week, Washington announced tariffs on 1,102 separate categories of Chinese products, to come into effect on July 6. This was also in response to the U.S for applying first, the tariffs.
For months now, the United States and China have been exchanging ever-escalating threats, raising fear about a potentially destabilizing trade war.
The president said any further retaliation by China to this round would increase the roster of goods by another $200 billion. Which is to say: Beijing is using violations of worldwide trade rules in a bid to reshape the global economy in a manner that will weaken the West relative to China. "This is a trade dispute - nothing more, nothing less".
The yield on the USA 10-year Treasury fell to 2.88 percent from 2.92 percent.