China's commerce ministry has announced that it will start imposing 25 per cent import duties targeting $16 billion worth of US goods.
The Chinese counter-move will take effect immediately after the US imposes tariffs on the same amount of Chinese goods on August 23.
The list of US imports affected by the taxes includes coal, oil, chemicals and some medical equipment.
Last month, the US imposed duties of 25 per cent on Chinese imports worth $34 billion.
The US is also considering further tariffs on another $200 billion worth of Chinese goods which could come into effect in September.
For its part, China has threatened continue the tit-for-tat trade war by slapping tariffs on another $60 billion of American imports.