Hours earlier, Trump signed an order that also could result in restrictions on Chinese investment in the USA, saying it would be the "first of many" trade actions.

There are fears the move would trigger a trade war between the world's number one and number two economies.

"Yes", Mr. Trump said, according to the White House press pool.

Pelosi said Trump's tariffs package "should be used as a leverage point to negotiate more fair and open trade for USA products in China". But America's longstanding complaints about Chinese economic practices continued to simmer, and it became more and more apparent that the US investigation into China technology policies was going to end in trade sanctions. He also unveiled plans to curb Chinese investment into the US. "We can't let that happen", he said.

In January, it ruled that China must lower its tariffs on broiler chickens imported from the US.

"We are competing, and winning, with our exports to China growing nicely from zero to about 2.5 million boxes per year", said Jim Bair, CEO of the U.S. Apple Association, a trade group. Foreign express delivery companies increasingly require business permits and licenses to operate, and the sector is a "target of regulatory oversight on nearly every aspect of activity and by every level of government, including central, provincial, and municipal", said a person familiar with the situation.

Some economists say higher U.S. tariffs will lead to higher costs and ultimately hurt U.S. consumers, while restrictions on Chinese investments could take away jobs in America.

China has previously said there would be no victor from any trade war. However, one person said yesterday's decision reflects a years-long buildup of tensions and aggravation about a lopsided playing field in U.S.

On a separate trade front, Mr Trump authorised the suspension of controversial tariffs on steel and aluminum imports from key trade partners, including Britain, the White House said.

Rick Larsen, a US House Representative from the second congressional district in the northwestern US state, said Trump's attempt to punish China by hitting it with US$60 billion of punitive tariffs "is not the right choice".

Capital Economics found for the typical Chinese product sold in the United States, the cost of importing it accounts for just under half the retail price, therefore a 25 per cent tariff would drive prices up by around 12 per cent. Is the United States in the right position to criticise China on trade imbalance?

"Many countries are calling to negotiate better trade deals because they don't want to have to pay the steel and aluminum tariffs", Trump said. "If I were in the government, I would probably hit soybeans first, then hit autos and airplanes", said the respected Lou Jiwei, now chairman of the National Council for Social Security Fund (NCSSF).

"Nobody wins from a trade war", he said.

The Chinese embassy in the USA released a statement early on March 23, noting that it while China does not want to start a trade war, the country "is not afraid of and will not recoil from a trade war".

The senior United States official said Washington was "very optimistic" that allies such as Europe, Japan and Australia would join its WTO case.

It also will create space for potential negotiations for Beijing to address Trump's allegations on intellectual property and delay the start of immediate retaliation against USA products from aircraft to soybeans. USA agricultural exports to China stood at $19.6 billion past year, with soybean shipments accounting for more than a third of the entire U.S. crop, and Chinese state media has floated the idea that USA soybean farmers could be an easy target for retaliation.

This would follow similar action from telecoms firms AT&T and Verizon, which cut ties with Huawei after U.S. officials raised concerns about its close affiliation with the Chinese government.