Mr Trump warned, in a statement, that if China takes retaliatory action against United States farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $US267 billion of additional imports".
On the futures markets, the ASX futures are pointing to a 4 points fall.
The tariffs will start at 10 percent, beginning Monday, and then rise to 25 percent on January 1.
For Australia, where the dollar has already shed almost 10 U.S. cents of value since late January, there's a direct impact on our resource exports from lower Chinese growth and an indirect one given that our currency and financial markets are seen as a safe proxy for an exposure to China.
"This is not an effort to constrain China, but this is an effort to work with China and say, ´It´s time you address these unfair trade practices that we´ve identified that others have identified and that have harmed the entire trading system", the official said.
"If countries will not make fair deals with us, they will be 'Tariffed!'" Trump wrote.
At the same time, the administration said it is still open to negotiations with China.
The products spared included consumer electronics like smart watches and Bluetooth devices, child safety products such as high chairs, auto seats and play pens, and certain health-and-safety products such as bicycle helmets, the officials said.
BPSA's president, Adam Micklin, told BRAIN, "The BPSA and PeopleForBikes are aware of the tariffs news regarding a possible reduction to 10 percent but we have not had a chance to fully review the list". No items were added, the officials said.
Lower economic growth in China would have spill-over effects to the rest of Asia given that, just as it provides critical links in the supply chains of United States companies, they are also plugged into its supply chain.
The US chamber of commerce, retailers, agricultural groups and some members of Trump's own Republican party have spoken out against his tariff campaign.
The officials said China had been given "chance after chance" to change the trade practices considered unfair to United States businesses, but "have remained obdurate".
Trump's decision is a significant escalation of an already serious trade dispute between the world's two largest economies - one with seemingly no end in sight.
The president has described the tariffs as leverage in negotiating Chinese policy changes with Chinese President Xi Jinping.
Separately, one of China's most prominent figures in global finance says Beijing should press Washington to end their tariff battle by clamping down on exports of goods needed by American companies, according to news reports Monday.
The administration earlier this month floated the idea of talks led by Mnuchin, with Liu expected to lead the Beijing delegation.
President Donald Trump said he imposed the tariffs to pressure China on business tactics that he said unfairly disadvantage American businesses.
The comments by Lou Jiwei, a former finance minister and chairman of China's sovereign wealth fund, follow reports regulators are squeezing American companies by slowing down customs approvals and stepping up environmental and other inspections.
White House officials said Monday that China could win relief from the tariffs by acceding to the administration's trade demands, including allowing U.S. companies greater access to the China market and dropping its requirement that USA companies hand over valuable technology to Chinese partners.
Fang said that even if Trump puts tariffs on all Chinese exports to the United States, the negative impact on China's economy will be about 0.7 percent.
The pan-European STOXX 600 index fell as much as 0.2 percent, and Germany's DAX dropped half a percent, Reuters reported, while France's CAC 40 and Britain's FTSE 100 each fell 0.3 percent.
In remarks earlier in the day, Trump predicted an eventual deal with Beijing.
Oil prices fell on worries rising trade tensions between the USA and China could dent global crude demand.
The Chinese have previously hit back with tariffs on $50bn worth of U.S. products in retaliation, targeting their response against key parts of the president's political base, such as farmers.
- Lewis Hamilton Wins Singapore Grand Prix To Increase Title Lead
- Florence: North Carolina's rivers still rising after record rain
- NCDOT warns residents about Florence flooding interstates, highways
- How to prepare your iPhone or iPad for iOS 12
- Christine Blasey Ford: Kavanaugh Accuser Comes Forward
- Florence's death toll climbs to 17
- Jose Mourinho once again gets angry with media
- Companies Are Warned Over Rising Number of Young Vapers
- Hurricane Florence lashes Carolinas, heavy rain leads to floods
- Jurgen Klopp laughs off Gary Neville's comments about Liverpool