On Friday, China said that it will impose new tariffs on American goods worth $75 billion. The Chinese State Council has decided to slap tariffs ranging from 5 percent to 10 percent on these goods in two batches which will be effective on 1 September and 15 December.

A 25 percent tariff will be imposed on cars imported from the US and a 5 percent on auto parts and components, which will become effective on 15 December. China had earlier paused these tariffs in April and said that it was forced to take retaliatory measures now.

The tariffs are in retaliation to US President Donald Trump's threat to impose 10 percent tariffs on another $300 billion of Chinese goods, which would put all goods entering the US from China subject to some kind of duty. Some of those tariffs were later delayed to December to avoid any impact on holiday shopping season for Americans. Some items were outright removed from the list.

"In response to the measures by the U.S., China was forced to take countermeasures," the Chinese State Council said in a statement on Friday.

"The Chinese side hopes that the US will continue to follow the consensus of the Osaka meeting, return to the correct track of consultation and resolve differences, and work hard with China to end the goal of ending economic and trade frictions," it added.

China's finance ministry had earlier said that the US had violated a consensus that was reached between Trump and Chinese President Xi Jinping at summit in Japan in June to resolve their dispute by threatening new tariffs.