By Vivian Salama 

WASHINGTON -- The Trump administration is working on measures that protect agriculture and other critical industries from retaliatory tariffs being threatened by China amid an escalating trade dispute between the two countries, a top adviser to President Donald Trump said.

Peter Navarro told reporters on Tuesday that Agriculture Secretary Sonny Perdue and others in the administration are taking into account the potential impact of retaliatory tariffs on those industries and are making provisions.

The administration is "working on measures that will have the backs of farmers," he said. "I can assure you we are not unprepared."

On Monday, Mr. Trump escalated a trade conflict with China, asking his administration to identify a new list of $200 billion in Chinese goods that would be penalized with tariffs.

The move followed tariffs applied last week on $50 billion in Chinese imports to the U.S., designed to punish China over allegations of unfair trade practices.

Beijing, in return, is imposing retaliatory tariffs in two steps as Washington is doing -- picking the same amounts and same dates the U.S. is choosing. On July 6, China will levy duties on $34 billion of U.S. products, covering 545 categories, ranging from soybeans, pork, chicken and seafood to sport-utility vehicles and electric vehicles.

The farm goods were chosen to hit U.S. states that supported Mr. Trump just months ahead of the midterm elections, according to people with knowledge of Beijing's plan.

Then China plans to implement tariffs on an additional $16 billion of U.S. goods, the State Council said. The start date for tariffs on those products, including chemicals, coal, crude oil and medical devices, will be announced later, the council said. Commercial jets, airplane engines and other aviation equipment were left off the list.

The Trump administration announced its decision to move forward with tariffs last week after months of strained negotiations by trade representatives from both countries.

Mr. Navarro said that the president is willing to continue negotiations with China as he seeks to find a solution that will ultimately correct the trade imbalance. He added, however, that "talk is cheap" and the administration is now looking for China to show its goodwill through actions.

"China has a lot more to lose than we do," said Mr. Navarro. "Our phone lines are open. They've always been open...The president is willing to talk to anyone at any time about these."

In a statement late Monday, Mr. Trump said that he has "an excellent relationship with President Xi [Jinping], and we will continue working together on many issues. But the United States will no longer be taken advantage of on trade by China and other countries in the world."

(END) Dow Jones Newswires

June 19, 2018 13:40 ET (17:40 GMT)