The new tariffs on USA goods will be 25 percent.
This is part of the US' response to China's "unfair trade practices" related to the forced transfer of American technology and intellectual property, the US Trade Representative (USTR) said.
"None of this is good for the automakers, who are rapidly becoming more and more globalized and depend on global supply networks to operate profitably", Ed Kim, Vice President of Industry Analysis at AutoPacific, told Motor1.com when these tariffs were initially proposed in April.
New American tariffs on Chinese goods now affect $50 billion in annual imports, and there's no end in sight.
President Trump had repeatedly expressed discontent over the U.S. trade deficit with China, accusing the country of unfair trade practices, intellectual property theft, currency manipulation, and of providing state aid to Chinese firms.
China's imports rose 27.3 percent year-on-year in July, in a sign domestic demand remains solid, but the worry is that the escalating Sino-U.S. trade war, rising corporate bankruptcies, and a steep decline in the yuan could put a significant dent on the economy.More news: Mystery as student vanishes while out for night time jog
Of more direct effect in the Sino-U.S. trade war, China's surplus with the United States shrank only marginally to $28.09 billion last month from a record $28.97 billion in June.
China fired back warning it would impose duties on $60 billion in USA goods.
"My expectation is that U.S. tariffs on $250 billion of imports from China will be in effect about a month prior to the November U.S. elections".
China's 25 percent tariffs will apply to USA products such as coal, gasoline, vehicles, motorcycles and medical equipment.
Mr Trump has said he would be willing to hit all of China's imports with duties. The Trump administration already has a list of $200 billion more in tariffs against China that are under consideration.
Wednesday's knee-jerk reaction to the announcement of the tariffs was a typical move by traders.
USA industries and farmers have been caught in the crossfire, and the Trump administration announced $12 billion in aid to help farmers hurt by duties on crops such as soybeans.