The Chinese Ministry of Commerce announced a 25 percent charge on $16 billion worth of U.S. goods. The 333 goods being targeted by China include vehicles such as large passenger cars and motorcycles. Various fuels are on the list, as well as fiber optical cables.
China is also going after coal, grease, Vaseline, asphalt and plastic products, and recyclables.
The yield on the benchmark 10-year Treasury note was a touch lower at around 2.966 percent at 1:06 p.m. ET, while the yield on the 30-year Treasury bond was just higher at 3.115 percent. Bond yields move inversely to prices.
After the U.S. Federal Reserve decided to hold fire on raising interest rates last week, traders will be turning their attention to Virginia, where Richmond Fed President Tom Barkin will speak about "Unlocking Our Potential" in Roanoke.
The U.S. Trade Representative's office announced Tuesday that the States would begin gathering levies on an additional $16 billion in Chinese goods later this month. It also published a final tariff list that pointed out 279 import product lines, according to Reuters.
In recent days, Chinese state media has hit back at the U.S. in light of the levies that have been threatened.
The Treasury Department auctioned $26 billion in 10-year notes at a high yield of 2.96 percent. The bid-to-cover ratio, an indicator of demand, was 2.55. Indirect bidders, which include major central banks, were awarded 61.3 percent. Direct bidders, which includes domestic money managers, bought 11.3 percent.