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Statistics showed that in the first six months of the year, China's exports to the U.S. rose 13.6 percent from a year earlier, while imports from the United States increased by 11.8 percent.

Gold slipped to seven-month lows and Treasury prices rose after the Federal Reserve reinforced views of strong USA economic growth in a report to Congress, reinforcing expectations of higher interest rates.

While China has vowed to retaliate against the proposed new USA tariffs - 10 percent on $200 billion of Chinese goods - the lack of a specific response to date has sparked global relief.

The United States and China could reopen talks on trade but only if Beijing is willing to make significant changes, U.S. Treasury Secretary Steven Mnuchin said on Thursday.

Analysts expect to see the impact of the tariffs in the coming months, warning of a less favorable trade balance for China.

US President Donald Trump had already threatened to impose additional tariffs if China - the world's largest exporter - retaliates.

Pressed on the possible negative impact of multiple trade disputes on the US economy, Mnuchin said the Trump administration was keeping a watchful eye.

Metals prices recovered after a meltdown following Trump's threats on Tuesday for 10 percent tariffs on another $200 billion of Chinese goods.

For January-June, it rose to $133.76 billion, compared with about $117.51 billion in the same period past year.

While China continues to benefit from strong global demand for its goods for now, the rising trade tensions with the USA has the potential to hurt both sides. China's trade surplus with the U.S. over the same period was $133.76 billion, up from $117.51 billion previous year. The new tariffs would kick in within 60 days. They said as a outcome figures for July and August were likely to show a decline in exports to the US.

But, he said, China has another option - Beijing could reduce the impact of United States tariffs on exporters by devaluing the yuan to make its goods cheaper for American consumers.

Industrial metals copper, zinc and lead all slumped as much as 4 percent to their lowest levels in about a year over worries that the trade dispute could dent China's commodity-hungry economy.

"Not only will Chinese exporters suffer but American consumers as well", she said.

"So we would be back to square one", Mr Kuo said, with China exporting more to the USA than it buys from the country.

The news came as the two economic superpowers stand on the brink of an all-out trade war that would have a huge negative impact globally.