The American Association of Equipment Manufacturers (AEM) has criticised the Trump Administration over the introduction of 25% tariffs on $50bn of Chinese imports.
Chinese goods affected include types of construction and agricultural equipment.
The duty increase will also affect American companies that are bringing in parts to make equipment using American labour.
Dennis Slater, the president of the AEM, said: "We’re extremely disappointed with the Trump administration’s decision to move forward with these harmful tariffs. This move jeopardises many of the 1.3 million well-paid manufacturing jobs our industry supports.
"The expected retaliatory actions by China also raise costs for equipment makers that rely on a vast supply chain around the world, further eroding the benefits of the recent tax reform."
Since Trump’s trade announcement on Friday, China has said it will impose a similar 25% tariff, also worth $50bn.
The US Chamber of Commerce has issued a statement saying: "This is not the right approach. Imposing tariffs places the cost of China’s unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers and ranchers."
Stock markets across the world have fallen due to fears of a trade war between the two nations.
Image: President Trump (Wikimedia Commons/Americanspirit)