Trump plans to slap 10% tariff on $200bn of Chinese goods

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Trump also threatened to add tariffs on about $267 billion of additional imports if China retaliates against US farmers or other industries.

His comments follow a report in The Wall Street Journal.

"We are ready to negotiate and talk with China any time that they are ready for serious and substantive negotiations toward free trade to reduce tariffs and non-tariff barriers, to open markets, to allow the most competitive economy in the world, ours, to export more and more goods and services to China", said Kudlow, who worked as Reagan's budget deputy between 1981 and 1985.

The green light for the tariffs initially dragged US stocks lower, fueling drops in the Chinese yuan in offshore trading and gains in the dollar index.

Still, American consumers could start feeling the cost of the tariffs for everyday goods, as the latest move brings all Chinese imports subject to a new tariff to $250 billion, roughly half of China's shipments to the U.S. previous year.

The upcoming tariffs will be on a list of items that included internet technology products and other electronics, printed circuit boards and consumer goods, including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and auto seats for babies, Reuters explained. U.S. Treasury Secretary Steven Mnuchin has made clear that high-level talks aimed at alleviating the trade tensions between Washington and Beijing will be held late next week. In previous rounds of anti-China tariffs, it has taken one to two weeks to make list revisions and another two to three weeks to begin collecting tariffs.

In July, Trump announced that his administration would offer a $12 billion emergency plan to help offset farmers hard hit by retaliatory tariffs imposed on agricultural products like soybeans, pork and dairy by China and other countries.

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"There are quite a few names that are sitting on long butterfly positions, so they'll make money if it (the Canadian dollar) moves up or down", said Simon Côté, managing director, risk management solutions, National Bank Financial.

Trump has said he will no longer allow China to take advantage of the United States on trade, though opposition to escalating tariffs has swelled in recent weeks within US business circles.

The US and China have already placed penalties of $50 billion worth on each other's goods.

China has not publicly committed to join a new round of negotiations, but in the past it has pulled back from the prospect of talks in the face of escalations in the dispute.

The trade tiff has yet to be felt in USA markets as the tariffs, which now are set at 3.8 per cent, may rise to just 10 per cent, which most companies can handle in a growing economy, said Brian Nick, chief investment strategist at said on Monday he would announce his latest plan on China tariffs after the markets close.

Other commentators have suggested Beijing use its holdings of USA government debt or target American companies in China.

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