Last Friday, the US imposed 25 per cent tariffs on $34 billion in Chinese products, and Beijing responded by hitting the same amount of USA imports.
"Consumers, businesses and the American jobs dependent on trade are left in the crosshairs of an escalating global trade war".
The list could be released as soon as Tuesday, and likely this week, according to the people, who spoke on condition of anonymity because the matter isn't public.
The United States has made a decision to impose tariffs on $200 billion worth of imports from China after efforts to negotiate a solution to the trade dispute failed to reach an agreement, senior administration officials said on Tuesday. "This action falls short of a strategy that will give the administration negotiating leverage with China while maintaining the long-term health and prosperity of the American economy".
Consumer-goods companies have been bracing for months as the Trump administration steadily ramped up its rhetoric on trade with China and other major trade partners.
On Tuesday, the Office of the US Trade Representative proposed 10 percent tariffs on a list of 6,031 Chinese product lines.
Senate Finance Committee Chairman Orrin Hatch, R-Utah, responded to Lighthizer's announcement with dismay.
Chinese officials are expected to retaliate in other ways, hitting US firms in China with unplanned inspections, delays in approving financial transactions and other administrative headaches.
The move comes just days after the United States and China imposed tit-for-tat tariffs of $34bn on the other countries' goods. He said one has shifted final assembly of goods from China to a newly created American unit.
In addition, the USA is considering separate duties on a further US$16 billion in Chinese goods, after a public hearing later this month.
The United States complains that China uses predatory practices in a push to challenge American technological dominance.
Beijing, meanwhile, has unveiled measures to help Chinese companies absorb the US trade blows, pledging to funnel money collected from its own import levies to firms and workers tangled in the escalating trade war.
Updates with market reaction in third paragraph.