China said on Wednesday it will retaliate if the United States takes further steps hindering trade, after a source said the Trump administration proposes slapping 25 percent tariffs on $200 billion of imported Chinese goods.
Foreign Ministry spokesman Geng Shuang told a daily news briefing in Beijing that U.S. pressure on trade won't work, and that Beijing has always upheld using dialogue to resolve trade issues.
The U.S. imposed 25 percent tariffs on $34 billion of Chinese products earlier this month, with plans to add another $16 billion of imports on Tuesday.
Trump initially threatened to levy 10 percent on an additional $200 billion but that figure may now rise to 25 percent, sources told the Washington Post and Bloomberg.
It would represent a ramping up of pressure over Washington's trade standoff with Beijing.
Markets were however steady on Tuesday, given a boost by hopes for new negotiations.
In 2017, the United States had a $376 billion trade deficit with China, which it is keen to cut.
Trump recently threatened to slap punitive tariffs on all Chinese imports, which accounted for more than $500 billion last year.