Beijing will impose levies on a total of 5,207 US products - ranging from liquefied natural gas to certain types of aircraft as well as cocoa powder and frozen vegetables - at 5 and 10 percent, instead of previously proposed rates of 5, 10, 20 and 25 percent, the finance ministry said.
Washington has already imposed 25 percent duties on $50 billion of Chinese goods over what it alleges are unfair trade practices.
The increase is aimed at curbing "trade friction" and the "unilateralism and protectionism of the United States", the ministry said on its website.
Trump's comments came a day after he targeted another $200 billion in Chinese imports with tariffs starting next week, drawing an immediate vow of retaliation from Beijing.
Trump has also complained about America's gaping trade deficit - $336 billion past year - with China, its biggest trading partner.
Trump took to Twitter on Tuesday morning to say that any further action by China targeting USA farmers and industrial workers would result in "great and fast economic retaliation" from the US.
But aside from adjusting the list of products affected by the tariffs, such as removing smart watches from the latest round, the administration has remained largely impervious to the efforts of lobbyists.
The latest round of tariffs could lower annual GDP growth by about 0.7 percent, according to Oxford Economics chief US economist Gregory Daco in a Tuesday research note.
This will allow United States companies some time to adjust their supply chains to alternate countries, a senior administration official said.
The original justification for the USA tariffs was supposed to be Chinese violations of United States intellectual property, explained Derek Scissors, an expert on China's economy and U.S. economic relations with Asia and a resident scholar at the American Enterprise Institute.
The trade war has fueled concerns in U.S., especially in technology, consumer electronics sectors.
The group questioned whether or not the tariffs are actually legal-it said "Congress has not given the president or the USTR a blank check to pursue a trade war"-and expressed its hope that the Trump administration will rethink the tariffs".
While tariffs make imports more expensive, that also increases the costs for export industries, which makes them less competitive.
"President Trump is a hard-hitting businessman, and he tries to put pressure on China so he can get concessions from our negotiations".
USA trade actions against China will not work as China has ample fiscal and monetary policy tools to cope with the impact, a senior securities market official said.
The tariffs will start at 10 percent, beginning Monday of next week, and then rise to 25 percent on January 1.
Trump's tariffs on China raise costs and create uncertainty for companies that have built supply chains that span the Pacific Ocean.
During an interview at the New York Economic Club on Monday, National Economic Director Larry Kudlow said Trump has been unsatisfied with how trade discussions with China have progressed to this point, but said he did not believe the tariff policy would cause any meaningful economic damage at home.
US President Donald Trump has enforced higher import taxes will apply to more than 5000 Chinese goods. "But, so far, China has been unwilling to change its practices".
The US Trade Representative's office eliminated 297 product categories from the proposed tariff list, along with some subsets of other categories.
Ahead of Trump's tariff announcement late Monday, top White House economic adviser Larry Kudlow said the United States was still willing to continue its dialogue with China.