"As a result of China's retaliation and failure to change its practices, the president has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports", U.S. Trade Representative Robert Lighthizer said in a statement.
China's Commerce Ministry has said that Beijing has no choice but to fight back after the U.S. "launched the largest trade war in economic history", accusing Washington of violating the rules of the World Trade Organization (WTO).
More than 6,000 items could be affected - including burglar alarms, vehicle tyres, handbags, baseball gloves, carpets, toilet paper, dog food, and hundreds of food products.
U.S. trade representative Robert Lighthizer announced that the USA was acting because China had not heeded previous warnings.
China said tit-for-tat tariffs will "destroy" trade between the world's top two economies, after Washington fired the next shot in a ballooning trade war, readying fresh levies on $200 billion in Chinese goods.
Mr. Trump hit US$34-billion worth of Chinese imports with 25-per-cent tariffs starting last week, with another US$16-billion worth to be added shortly.
At a forum in Beijing, a senior official accused the United States of "damaging the world economic order" and said it would "destroy" trade between the rival powers.
USA stocks extended losses on Wednesday, set to snap their four-day winning streak, and metals prices slumped as US threats of tariffs on an additional $200 billion worth of Chinese goods pushed the world's two biggest economies closer to a full-scale trade war.
"Rather than address our legitimate concerns, China has begun to retaliate against U.S. products ..." President Donald Trump has threatened higher tariffs on more than $500 billion of goods, or almost all of China's annual exports to the United States.
"China is forced to strike back to safeguard core national interests and the interests of its people", the Commerce Ministry said.
"The President has broken his promise to bring 'maximum pain on China, minimum pain on consumers, ' and American families are the ones being punished", Hun Quach, RILA VP of global trade, said in a statement.
"Tonight's announcement appears reckless and is not a targeted approach", Senate Finance Chairman Orrin Hatch, R-Utah, said in a statement.
When he talks China, we listen.
The list is subject to a two-month public comment period before taking effect.
China gave no details, but it has plenty of options to retaliate that could extend beyond additional tariffs on USA imports.
Beijing described Washington's latest threat as "totally unacceptable", saying it would hurt the world.
"But China's reaction to the U.S. tariffs could pose a far greater threat to the index in time".
China can increase soybean imports from other countries to reduce its reliance on the United States, the boss of a state-owned grain trader said on Wednesday. They criticize Trump's tactics but share US complaints about Beijing's industrial policies.
Hong Kong's Hang Seng index fell 1.3 percent, with the China Enterprises index giving up 1.5 percent. In Shanghai, the main index fell 1.78% to close at 2,777.20 points, while the smaller Shenzhen index tumbled 1.96%.