It looks a lot like a trade war.
"Beijing right now is trying to motivate USA stakeholders to press the Trump Administration to enter into direct negotiations with China and reach a settlement before tariffs are imposed", the Eurasia Group consultancy said in a research note. "China alone can not make that happen", he said, adding that the United States do not want to sell what China wants to buy.
Canadian producers can't automatically replace American products, but if the material is the same, multinational companies might try to relocate their production destined for China to escape US duties, Podruzny added.
China targeted 106 USA goods for import tariffs - including important US agriculture exports like soybeans - after the Trump administration last night released a list of 1,300 categories of Chines goods the USA plans to impose tariffs on.
Brazil and Argentina are the main competitors to USA growers in the market for soybeans and corn. And China set no date for its 25 percent duties to take effect, saying it is waiting to see what President Donald Trump does.
Still, U.S. stock futures slumped over concerns that the back-and-forth tariff actions will stunt trade and growth.
The market suffered a sharp dive after the opening bell after China struck back against the USA with threats to levy tariffs on more than 100 American-made goods ranging from autos to airplanes, as traders initially feared that it signaled an escalation in the trade fight between the world's two biggest economies.
The president also protested, "When you're already $500 Billion DOWN, you can't lose!" - a reference to what Trump believes the country's trade and goods deficit with China was in 2017.
It's unclear at what stage tit-for-tat exchanges officially become a trade war.
Wednesday's announcement means there are now two U.S.
"The administration is rightly focused on restoring equity and fairness in our trade relationship with China", said Myron Brilliant, executive vice president and head of worldwide affairs at the chamber. But the tariffs on both sides remain only threats and plans.
"If we hit all points... the market will go up".
As trade tensions rise between the United States and China, a small but vocal online community is calling for a boycott of USA products, fanning fears that American brands could see a backlash similar to that faced by South Korea previous year.
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Both sides have calibrated their current actions around the figure of $50 billion worth of imports.
Presidents Xi Jinping (China) and Donald Trump (US) in Beijing previous year.
The implementation date of China's retaliatory tariffs depends on the outcome of bilateral negotiations, and the USA decisions, Deputy Finance Minister Zhu Guangyao told reporters after a news conference in Beijing.
"I think the market is beginning to understand and remember that Trump's bark is much bigger than his bite", says Lindsey Bell, investment strategist at CFRA, a Wall Street research firm.
The list includes parts of communication satellites, semiconductors, aviation equipment and brewery machinery, as well as more niche products such as bakery ovens and rocket launchers.
The US plans to apply the tariffs to about United States dollars 50 billion worth of goods to punish China for its alleged theft of trade secrets, including software, patents and other technology.
In addition to advanced technologies such as communication satellites, the USA list includes items ranging from various types of steel to television components, medical devices, dishwashers, snow blowers and even flamethrowers.
China's commerce ministry said it would hit back with "equal scale and equal intensity", and outlined that 106 United States products in 14 categories would attract an extra 25 per cent tariff.
The list of 1,300 products published by the US Trade Representative (USTR) is to undergo further review over the next 60 days before a final decision is made on which of them, if any, will be subject to the additional 25-per-cent tariffs.
Trump follows through on the tariffs recommended by his commerce department, taxing steel imports at 25% and imported aluminum at 10%.
It comes in response to President Trump's plans to impose charges on Chinese imports including medical, aerospace and information technology. China also has a separate development strategy for artificial intelligence, published a year ago.
The US tariff move follows the release of the results of an investigation into China's intellectual property practices that Trump ordered previous year.
U.S. chemicals, some types of aircraft and corn products are among the goods facing the taxes, the finance ministry said.