Washington has also completed a second list of possible tariffs on another US$100 billion of Chinese goods, in the expectation that China will respond to the initial U.S. tariff list in kind, sources said. Additional tariffs for 545 items worth about 34 billion USA dollars, including agricultural products, vehicles and aquatic products, will be effective from July 6, 2018, according to a statement of the commission. Among the affected $16 billion in USA goods include crude oil, natural gas, coal and some refined oil products.
China on Friday swiftly retaliated by imposing "equal" tariffs on USA products following a decision by Donald Trump to slap duties on $50 billion of Chinese products.
In April, Washington said it will impose 25 percent tariffs on 1,300 Chinese goods that are worth $50 billion. The second set, worth about around $16 billion, will undergo further review, including a public hearing.
The initial list mostly targets Chinese goods that fall under the "Made in China 2025" initiative, or other Chinese government-backed programs aimed at advancing Chinese industry.
Trump has long vowed to fulfil his campaign pledge to clamp down on what he considers unfair Chinese trading practices.
The tariffs are the latest chapter in the ongoing trade conflict between the two countries. The announcement led major American allies to promise their own trade measures to answer the American import taxes.
Some analysts see a strategic move to target goods in marginal USA states that are home to President Donald Trump's base.
Audi chief exec arrested over Dieselgate vehicle emissions scandal
It remains to be seen how long Stadler remains in police custody and whether he's able to remain in his post during his detention. A spokesperson for Volkswagen confirmed his arrest to Reuters , saying, "We confirm that Mr Stadler was arrested this morning".
A statement from the Chinese Ministry of Commerce said that the country would implement tariffs on a similar scale on United States goods. Officials said the list of products does not include common consumer products, such as cell phones and TVs. He added that the action comes "in light of China's theft of intellectual property and technology and its other unfair trade practices".
The new tariffs will go into effect July 6. Among the specific goods listed by the Chinese government are "unrefined pig fat", coconuts with or without shell, all kinds of rice (including rice flour), frozen orange juice, whiskey, and octopus.
China responded to US tariffs announced Friday morning with a promise to impose reciprocal levies on a range of American products, including agricultural products, cars and seafood. But the White House announced at the end of May that the tariffs would move forward despite the deal.
The tit-for-tat trade measures amount to a sharp escalation of conflict between the USA and China.
On Thursday, a Commerce Ministry spokesman said some exporters were rushing to fill orders due to concern trade conditions might change, but said they were "not the mainstream".
The Trump administration in May also assessed steel and aluminum tariffs on Canada, the European Union and Mexico.
Administration officials have signalled support for imposing the tariffs in a dispute over allegations that Beijing steals or pressures foreign companies to hand over technology, according to officials.