If the new duties are imposed, all imports from China would be subject to USA tariffs.
Futures for the Dow were up 0.4 percent and the broader S&P 500 futures added 0.5 percent.
US-China Business Council senior vice president Erin Ennis said that it would not be a surprise to see Trump move towards announcing more tariffs, given his repeated threats to do so. The tech-heavy Nasdaq composite slid 116.92 points, or 1.6%, to 7,050.29.
President Trump is scheduled to meet with Chinese President Xi Jinping at the G20 meeting in Argentina, but those talks are not likely to propel any major shift toward reaching an agreement on the future of trade between the two nations.
US Treasury Secretary Steven Mnuchin told Reuters earlier this month in Bali, Indonesia that China needed to agree to specific "action items" to re-balance the US-China economic relationship, opening markets and changing technology transfer, subsidy and currency policies.
The MSCI Emerging Market Index declined 0.2 percent, reaching the lowest in nearly 20 months on its sixth straight decline.
The Tuesday rally was welcomed by USA stock investors on edge after largely stellar earnings have failed to provide sustained relief to selling that began amid concern that rising rates will crimp economic growth. Australia's S&P-ASX 200 gained 1.3 percent to 5,805.10. Italy's FTSE MIB index rose 1.9 percent after Standard & Poor's did not downgrade the company's credit rating. He said 70% of voters opposed the $13-billion project.
South Korean court to rule on war survivors' claim against Japanese firm
The Supreme Court is expected to uphold its 2012 ruling and that could bring repercussions for relations between the countries. Japan's higher court upheld that ruling in 2003.
Brazil's Bovespa rose in morning trading after far-right politician Jair Bolsonaro was elected president, but it later turned lower and lost 2.2 percent.
US crude fell 1.28 percent to $66.18 per barrel and Brent was last at $76.07, down 1.64 percent.
The Russell 2000 is down 58.20 points, or 3.8 percent. Natural gas was unchanged at $3.19 per 1,000 cubic feet. Silver fell 1.8 percent to $14.44 an ounce.
The Stoxx Europe 600 Index failed to sustain momentum from Asia - it opened higher after good earnings for BP and Volkswagen, but corporate results were mixed overall before ending little changed.
Gold futures sank 0.1 percent to $1,226.30 an ounce.
Information for this article was contributed by Marley Jay of The Associated Press, by Thomas Heath of The Washington Post, and by Jeremy Herron and Sarah Ponczek of Bloomberg News.