A China central bank adviser said the planned USA import tariffs on $50 billion worth of Chinese goods - $34 billion plus a planned follow-on list worth $16 billion - will cut China's economic growth by 0.2 percentage points, although the overall impact would be limited, the official Xinhua news agency reported Friday.
The first round targets Chinese industrial goods, not consumer products, in an attempt to limit the impact on USA households, but companies that rely on Chinese-made machinery or components may eventually have to pass along increased costs to customers.
China's counterplan calls for $34 billion in duties on such American products as beef, chicken, pork and soybeans - as well as electric and sport-utility vehicles.
One area that will be hurt by United States tariffs is China's high tech industries, in things like new energy vehicles, robotics and other forms of smart manufacturing, that form the country's "Made in China 2025" industrial plan.
Chinese Commerce Ministry spokesman Gao Feng said that the proposed USA tariffs would hit many American and foreign companies operating in China and disrupt their supplies of components and assembly work.
Gao said China's foreign trade was expected to continue on a stable path in the second half of the year, though investors fear a full-blown Sino-U.S. trade war would deal a body blow to Chinese exports and its economy.
Companies worry the dispute could chill global economic growth, but Asian financial markets took Friday's developments in stride.
Japan's main stock index, the Nikkei 225, gained 1.1 percent while the Shanghai Composite Index added 0.5 percent.
The conflict between the world's two biggest economies reflects chronic tension in their relationship as customers, business partners, and increasingly competitors.
Underpinning the dispute about technology is Trump's anger at America's $375 billion deficit in goods trade with China.
Beijing has announced changes this year including easing limits on foreign ownership in insurance and some other fields.
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The agency said on Thursday that tariffs on USA products will take effect immediately after US tariffs on Chinese goods kick in.
Months of dialogue between the two economic superpowers appeared to have failed, with Trump warning just hours before the tariffs came into effect that Washington was ready to impose duties on hundreds of billions of dollars more in Chinese imports.
That would bring the total of targeted Chinese goods to potentially US$550 billion - more than the US$506 billion in goods that China actually shipped to the United States past year.
Chinese officials reject accusations of theft and say no foreign company is obligated to share technology. "And the impact on USA business, in my estimation, will be substantial".
China's said it was "forced to make a necessary counterattack" to a United States tariff hike on Chinese goods but gave no immediate details of possible retaliation.
"This is a potential concern for the outlook of corporate investment and consumption around world", Hui said.
The official newspaper China Daily accused the Trump administration of "behaving like a gang of hoodlums" who could do damage to the global economy unless other countries stop them.
The company said it had already moved some production to the United States and Mexico and would likely move more.
The American Chamber of Commerce in China appealed to both sides to negotiate a settlement.
The U.S. -China trade war could have global implications.
In the short term, analysts said, the moves may disrupt markets and hinder trade in both countries.