UBS Wealth Management CIO Mike Ryan on a new study on US business owners' views about the economy and tariffs.
The Chinese government responded and said Beijing will also slap additional import tariffs of 25% on $16 billion worth of U.S. goods ranging from oil and steel products to autos and medical equipment.
In a statement on its official website late on Wednesday, China's commerce ministry criticized the us move as being "unreasonable", saying it had no choice but to adopt the same measure on an equal amount of American goods ranging from fuel and steel products to autos and medical equipment.
The 25 percent tariffs will go into effect August 23, targeting cars, crude oil, natural gas and coal.
The headline numbers are the first readings of the overall trade picture for the world's second-largest economy since U.S duties on $34 billion of Chinese imports came into effect on July 6.
It will be the second time the USA slaps duties on Chinese goods in about the past month, despite complaints by American companies that such moves will raise business costs and eventually consumer prices.
While trade tensions are being ratcheting up, China's trade surplus with the USA stood at US$28.1 billion in July, close to the record-high in June, data released Wednesday showed.
China has already retaliated with duties of its own, and has pledged to match the United States dollar for dollar with new tariffs.More news: Lombok natural disaster : Victims 'buried alive' as number of dead rises to 131
Trade with countries along the Belt and Road totaled 4.57 trillion yuan, up 11.3 percent year on year, 2.7 percentage points faster than the average growth rate, data showed.
At the same time, Beijing reported a $28.1bn trade surplus with the U.S. in July, just below the record $28.9bn seen in June.
The world's two biggest economies are locked in a trade dispute.
The US and China have been trying to restart high-level talks that broke off after Trump followed through on his tariff threats.
President Trump had repeatedly expressed discontent over the U.S. trade deficit with China, accusing the country of unfair trade practices, intellectual property theft, currency manipulation, and of providing state aid to Chinese firms. But it held off on a final $16 billion as a result of concerns raised by USA companies.
March 1: President Donald Trump announcestariffs on all imports of steel and aluminum, including metals from China.
The United States and China implemented tariffs on $34billion worth of each other's goods in July.