But Beijing has fired back with a tit-for-tat response. It has published a list of more than 600 American products it plans to hit with its own taxes.
Is it a case of who blinks first in this economic brinkmanship? And what will it mean for global trade?
Presenter: Elizabeth Puranam | Guests Philippe LeGrain, Political Economist and Former Special Adviser to the Director-General of the World Trade Organization; Einar Tangen, China Political Analyst who advises the Chinese government on economic and development issues; Scott Lucas, Professor of American Politics at the University of Birmingham