The escalating conflict between the world's two largest economies has rattled markets and companies, which fear disruption to their global supply chains.
A paper published by Canadian think tank the CD Howe Institute suggests that Mr Trump's threats are having an effect on USA manufacturing by using "uncertainty as a new weapon in trade protection".
Stocks are trading lower at midday Tuesday on fresh worries about a trade dispute between the USA and China, although they've recovered somewhat from an early slump. "But the United States will no longer be taken advantage of on trade by China and other countries in the world".
China's proposed tariffs on United States petroleum imports, part of a mounting trade war between the two countries, would crimp sales to the shale industry's largest customer, adding new pressure on US crude prices, energy executives and analysts said in interviews this week.
Canada has pledged $16.6 billion in countermeasures to respond to USA tariffs on Canadian steel and aluminum.
Oxford Economics estimates that if President Donald Trump imposed the $200 billion in duties that he threatened to implement late Monday, and China responded in kind, US growth could slow by 0.3 percentage point next year. Combined, the potential tariffs on Beijing could cover $450 billion - a sum equal to 89 percent of Chinese goods imported to the United States a year ago.
"The tariffs announced thus far should have relatively small macro effects, but there is clearly a risk of further escalation", its analysts wrote in a note late Sunday.
"China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology", he said.
The Dow Jones industrials are up 30 points, or 0.1 percent, to 24,730, after falling 287 points Tuesday.
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Companies that do a lot of business in China were among the biggest losers on the Dow on Tuesday. The CAC 40 of France fell 1.1 percent and in London the FTSE 100 slipped 0.4 percent.
The Chinese Commerce Ministry reacted quickly to Trump's announcement, accusing the United States of "extreme pressure and extortionist behavior" and warning it would "strike back hard".
"If the United States acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures", the ministry said.
Trump is moving forward with the measures after months of sometimes fraught shuttle diplomacy in which Chinese offers to purchase more American goods failed to assuage his grievances over a widening trade imbalance and China's aggressive industrial development policies.
Trump also said that if China retaliates yet again, the United States would pursue additional tariffs on another $200 billion of goods. Beijing said it would respond with "comprehensive measures" if that happens.
Shares of Chinese companies listed in the USA slumped.
The tariffs would start to slow US growth, economists warn. US crude fell 1.6 percent to $64.80 a barrel in NY, and Brent crude, the global standard for oil prices, fell 0.5 percent to $74.94 a barrel in London.
Updated: This article has been updated to add Trump's threat to possibly follow the new round of tariffs on $200 billion of goods with another round.
"But I felt that tariffs were not the right approach there", Cook said in an interview with the financier David Rubenstein published earlier this month, adding that he showed Trump "some more analytical kinds of things to demonstrate why".