Trade analysts say it would be wiser for the United States to enlist its allies to challenge China's drive to grab technology, rather than go it alone with unilateral tariffs.
The Chinese tariffs announcement caused the U.S. dollar to lose ground to the Japanese yen, the Euro, and the British pound sterling.
A second list, which ranges from chemicals and plastics to motorcycles and technical equipment worth some $16 billion, is made up of proposed items - and will not be finalized until after a public hearing.
Tariffs that affect more than 800 products worth $34bn in annual trade are due to come into effect on 6 July.
Aircraft, included in the earlier Chinese list, were not on the revised list.
Beijing rejected that characterization, arguing the USA tariffs were against the rules of the World Trade Organization (WTO) and previous trade negotiations. In that year, the USA says its goods trade deficit with China was $375.2 billion.
Trump is shaking up the world economic order with his zeal for tariffs and embrace of trade conflict as a way to secure benefits for the U.S. He threw a summit of the Group of Seven wealthy economies into turmoil by revoking support for the group's joint statement and berating the summit's host, Prime Minister Justin Trudeau.
"A very interesting reading of the geopolitical status of play suggests that after Trump befriended North Korea in Singapore, China lost an important leverage factor".
Trump's announcement is an escalation of a long-simmering trade battle between the two countries. USTR added an additional 284 product lines not on the original list.
'That's what has gotten us to the situation today where the Chinese are actually at the table, ' Bannon said.
US President Donald Trump confirmed his plan to slap punitive tariffs on goods from China that "contain industrially significant technologies" as part of his effort to close a bilateral trade gap and force Beijing to change the way it acquires US technology.
Ron Moore, who farms 1,800 acres of corn and soybeans in Roseville, Illinois, said soybean prices have already started dropping ahead of what looks like a trade war between the two economic powerhouses.
Scott Kennedy, a specialist on the Chinese economy at the Center for Strategic and International Studies, said the Chinese threat was real and helped along by recent strains exhibited between the US and allies.
"China does not want to fight a trade war", the Commerce Ministry said.
U.S. Customs and Border Protection will begin to collect tariffs on the first $34 billion worth of Chinese imports on July 6.
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China has threatened to retaliate forcefully for any tariffs, listing USA products that range from sorghum, soybeans, meat and whiskey to airplanes and cars.
So far, the U.S. has imposed tariffs on steel and aluminium imports.
"Imposing tariffs places the cost of China's unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers, and ranchers", said Thomas Donohue, president of the U.S. Chamber of Commerce.
Trump has blamed the trade imbalance between the two countries for the loss of American jobs. US companies that rely on the targeted imports - and can't find substitutes - can apply for exemptions from the tariffs.
She added, "The trade skirmish is not just about the trade deficit and exchange rates, but about the rules of the game, market openness and intellectual property. The Chinese side firmly opposes that".