Minutes after the US tariffs went into effect at 12:01 Friday US time (0401 GMT), a spokesperson for China's ministry of commerce said, "China promised not to fire the first shot, but in order to safeguard the country's core interests as well as that of the people, it is forced to fight back", according to Xinhua.
"If this ends at $34 billion, it will have a marginal effect on both economies, but if it escalates to $500 billion like Trump said then it's going to have a big impact for both countries", Chen said. -China trade involves parts and supplies, rather than final goods - so the most immediate effect will be felt by the companies making the products, not the consumers finding them on store shelves.
Donald Trump's trade war could potentially drag in products from other American trade partners, undermining relations.
Despite this, Liang says he is not concerned about his business, noting if the USA don't want his flags, he can always work for someone else.
The dispute has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks.
"China will not bow down in the face of threats and blackmail and will not falter from its determination to defend free trade and the multilateral system".
The absence of safe-haven bids makes the yellow metal more vulnerable to strong USA non-farm payrolls report. The products, all sold on Chinese e-commerce platforms, ranged from pet food to mixed nuts and whiskey.More news: Roger Federer sprints past Struff to stay on title course — ATP Wimbledon
"By threatening unilateral action without having any allies and not reducing domestic discord on trade, the Trump administration has invited China to stand tough", said Scott Kennedy, director of the Project on Chinese Business and Political Economy at the Center for Strategic and International Studies.
The administration is set to begin imposing tariffs on Chinese goods on Friday.
The White House, however, has cast its volley of tariffs as a long overdue move to rectify a longstanding imbalance in trade between the countries - particularly, as Trump has said, in China's "unfair practices related to the acquisition of American intellectual property and technology". On Thursday, a spokesperson for China's ministry of commerce said the United States will be "opening fire on the whole world and also opening fire on itself".
Trump also said the United States is ready to target an additional $200bn in Chinese imports - and then $300bn more - if Beijing does not yield to U.S. demands and continues to retaliate.
He described the potential escalation to reporters aboard Air Force One: "Thirty-four, and then you have another 16 in two weeks and then, as you know, we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance. OK?"
The official newspaper China Daily accused the Trump administration of "behaving like a gang of hoodlums" who could do damage to the global economy unless other countries stop them.
A long-threatened trade war between the United States and China got underway on Friday as the USA imposed tariffs on $34bn in Chinese goods.
Beijing had said it would retaliate with punitive measures on US products worth a similar amount, including soybeans, pork and cotton, but it had not officially confirmed on Friday that they had taken effect.
"This is not economic Armageddon. We will not have to hunt our food with pointy sticks", Rob Carnell, chief Asia economist at ING, said in a note.