The Trump administration has published a preliminary list of additional Chinese products that could be targeted with tariffs in the escalating trade war between the world's two biggest economies.
The list could be released as soon as Tuesday, and likely this week, according to the people, who spoke on condition of anonymity because the matter isn't public.
"As a result of China's retaliation and failure to change its practices, the president has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports", U.S. Trade Representative Robert Lighthizer said in a statement.
Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of USA exports to China.
China's retaliation to those measures was "without any global legal basis or justification", Lighthizer said Tuesday.
On Friday, the USA slapped 25 percent taxes on $34 billion in Chinese imports, majority are industrial goods that the Trump administration says receive subsidies or other unfair support from Beijing.
The tariffs could take effect after public consultations end on August 30, according to a statement from the U.S. Trade Representative's office Tuesday.
Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose USA farmers and manufacturers to retaliation overseas.
"Tariffs on $200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families", said Scott Lincicome, a trade lawyer and senior policy analyst for the group Republicans Fighting Tariffs.
The president has repeatedly described his resort to tariffs - which are paid by American importers - as a lever to extract negotiating concessions from US trading partners.
A senior administration official told Fox News that China has been "non-responsive" to US actions and has insisted that Beijing does not see any way America has been hurt by Chinese policies.
The administration says its tariffs are created to punish China for what it calls unfair trade practices, theft of intellectual property, and "forced technology transfers".
Administration officials said they hoped the measures would convince the Chinese government to increase market access for United States companies and address allegations of the theft of intellectual property. But Mr Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers.