Trump has also spoken about slapping tariffs on imported cars, trucks and auto parts, which General Motors has warned could hurt the USA auto industry and drive up vehicle prices.
But eventually those costs will take their toll on the average wallet - and it likely won't be simply because of these tariffs.
China is expected to match the move with a 25 percent levy on USA goods to the same value on the same day. "And that's going to impact the stock market".
The United States slapped a 25 percent tax on $34 billion worth of Chinese imports, and China is retaliating with taxes on an equal amount of USA products, including soybeans, pork and electric cars.
China is targeting agriculture products and mechanical parts for the energy sector, whereas the USA is aiming its tariffs at a large number of industrial products and resources.
On Thursday, a spokesperson for China's ministry of commerce said the U.S. will be "opening fire on the whole world and also opening fire on itself".
How did we get here?
External observers have widely criticized this approach, saying such protectionist rhetoric undermines free trade policies that have shaped the global exchange of goods in recent decades.
US business groups, lawmakers on Capitol Hill and foreign leaders have pleaded with Trump to rethink his tariffs strategy, which has already led to billions in retaliatory duties from Mexico, Canada, the European Union and other countries as a result of the administration's duties on steel and aluminum imports that were first imposed in late March.
But Trump has said his administration will respond to retaliation from Beijing with much bigger waves of tariffs, raising the prospect of worsening tit-for-tat reprisals.
Duties imposed by the United States would trigger "trade diversion" from other steel makers, who would then dump their products in India, said Bhaskar Chatterjee, secretary general at Indian Steel Association.
China has vowed to fight back to protect its economy.
He threatened a 10 percent levy on an additional $US200b of Chinese goods if Beijng "refuses to change its practices".
The risk of an ever-escalating U.S-China trade war has businesses in both countries nervous.
What could the fallout be?
Hours after the tariffs, the USA released jobs figures that showed few signs of any early pressures on employment from the trade tension.
Global supply chains are now highly specialized and delicate, and disruption in one part of the production could imply a breakdown in the whole process, Hui said.
And if Trump extends the tariffs to $550 billion in Chinese imports, there's no way consumers could avoid being caught in the crossfire: The taxes would have to hit consumer products like televisions and cellphones.
Trump has slapped tariffs on all major United States trading partners: China, Canada, Mexico, the European Union and Japan (India is way down the line but is not excepted). U.S. soybeans, a key flash-point in the worsening trade relations, will see their tariff jumping to 28 per cent of the value, while the soybean duty for some other nations has been lowered to zero recently.
Perversely if China's retaliation included tariffs on United States dairy, meat and wine then we could actually get a bit of a trade boost. If the United States and China cool off after a first round of tariffs, the fallout will be modest, according to Bloomberg Economics.
"In effect, the Trump administration is behaving like a gang of hoodlums with its shakedown of other countries, particularly China", the state-run China Daily newspaper said in an English language editorial on Friday.