A senior Trump administration official told reporters that companies will be able to apply for exclusions for Chinese imports they can not source elsewhere.
New tariffs on imports from China may leave American companies with a choice - pay a higher freight bill now or pay the tariffs starting in three weeks.
The US is already at loggerheads with its traditional allies in Europe and North America after imposing tariffs.
The risks come at a time when the Federal Reserve has pushed interest rates into positive territory adjusted for inflation for the first time in over a decade, a move that will raise borrowing costs for consumers.
By contrast, the Trump administration earlier this year imposed steep tariffs on imported washing machines. Other tariffs will be announced at a later date.
Tariffs on other U.S. goods will be announced at a later date, Xinhua said.
Lighthizer added, "Our hope is that it doesn't lead to a rash reaction from China".
US officials say they fear that Beijing's long-range development strategy, dubbed "Made in China 2025", will hamper competition and hurt American competitors. "We will immediately introduce tax measures of equal scale and equal strength, and all economic and trade achievements reached by the two sides will be invalidated".
The Chinese government has already promised retaliation in equal measure against USA goods including soybeans and imports of four-wheel drive vehicles.
Justify’s Triple Crown run caps magical run for Canadian breeder
The future may be unknown or undetermined for Justify , but Baffert wasn't ready to stop glowing about what transpired Saturday. Purchased for $500,000, Justify earned $800,000 for his Belmont win, giving him $3,798,000 in his brief career.
"We grow more than we can use [domestically]", said Blue Earth County corn and soybean farmer Kevin Paap, president of the Minnesota Farm Bureau. "There's not much the farmer can do right now".
"The United States can no longer tolerate losing our technology and intellectual property through unfair economic practices".
Trump outraged Canadian, Mexican and European leaders last month by imposing punishing tariffs on imports of steel and aluminum to protect USA producers from allegedly unfair competition.
Companies and trade groups in the United States and China have raised concern about the potential fallout from the escalating trade dispute between the world's two biggest economies.
Trump's tariffs may also influence his efforts to bring peace to the Korean peninsula following his summit with leader Kim Jong Un this week in Singapore.
Trump has targeted China's "Made in China 2025" goods that are part of China's strategic plan to dominate the emerging high-technology industries that will drive future economic growth of China, but hurt economic growth for the USA and many other countries, he said.
The US penalty is created to punish China for stealing American technology and trade secrets.
In the best-case scenario for the U.S., China would back down on technology issues and open its market to more American goods and services.
China's response, released in detail early Saturday, now raises the prospect the USA will impose more duties following a pledge from Trump on Friday. The result: China has flooded world markets in steel, aluminum, solar panels and products, thereby undercutting prices and putting foreign rivals out of business. "The lobstermen obviously are concerned with trade and where they go". For now, weeks of shuttle diplomacy between Washington and Beijing, in an effort to reduce China's massive goods trade surplus with the United States, have produced nothing - and the very products that China had pledged to buy more of will now be slapped with higher import duties instead.
Political reactions to Friday's announced tariffs cut across party lines.
In a statement yesterday, the President said American trade with China "has been very unfair for a very long time", and insisted the new rules were created to punish China for the "theft" of American intellectual property.