The Dow Jones Industrial Average fell 0.38% to 27,909.6, the S&P 500 lost 0.32% to 3,135.96 and the Nasdaq Composite dropped 0.4% to 8,621.83.
According to Reuters, one Chinese official said that if the December 15 tariffs do go into place China will implement its own tariffs in retaliation.
Top White House economic adviser Larry Kudlow confirmed on Friday that the December 15 deadline to impose the new tariffs remains in place, but added that President Donald Trump likes where trade talks with China are going.
"We hope that the two sides will advance the negotiations and consultations in accordance with the principles of equality and mutual respect, take into account each other's core concerns and achieve satisfactory results as soon as possible", said Ren. China's policymakers may seek more stimulus measures after growth in the economy cooled to near 30-year lows.
Total Chinese exports were off 2.5% from a year earlier despite weakening global demand while imports were up 0.2%.
The Federal Reserve's Open Market Committee (FOMC) kicks off its two-day policy meeting on Tuesday.
Americans for Free Trade spokesperson Jonathan Gold says, "It's time the administration finalizes a deal with China to end the trade war and remove all tariffs". "China trade tensions is obviously very important", Ben Powell, BlackRock Investment Institute's chief Asia-Pacific strategist, said. "Is this meeting the intended goal of driving investors-particularly larger companies-from the Chinese market back to the U.S.?"
The U.S. dollar, which bounced on Friday after data showed U.S. job growth increased in November by the most in 10 months, was down marginally against a basket of currencies and the euro, at $1.107. Tonight lower producer prices and significantly higher consumer prices from the China.
China's November activity and spending data are due next Monday.
"Further delay in reaching an agreement would make it hard for struggling farmers to hold on in the face of rising bankruptcy rates", Duvall said.
Markets also have their eyes on American and European interest rate decisions coming this week and the outcome of Britain's general election on Thursday amid uncertainty over plans to leave the European Union.
Delaying the new duties, which cover about $160 billion in imports from China, including consumer favorites like mobile phones, could help reassure markets the two sides are making progress towards ending their trade war.
U.S. West Texas Intermediate crude CLc1 dipped 0.25% to $58.87 a barrel.
Sterling, which reached its highest against the dollar since April on Monday at $1.3180, added 0.3%, last changing hands at $1.3169.