"Ongoing uncertainty about trade policy had led to volatility in the prices of some commodities", the board's minutes said.
The tariffs will start at 10% and rise to 25% on 1 January, the White House announced.
The move will disappoint the City, where traders had been clinging to hopes of a peace deal.
However, this latest round is the biggest to date, and unlike the earlier rounds this latest list targets consumer goods, such as luggage and furniture.
Earlier, China vowed that it will not play defense in the escalating trade dispute, adding further fuel to tensions as a new list of items subject to tariffs, including technology and consumer goods, was anticipated from Washington.
According to a preliminary list of goods released by the US Trade Representative's office in July, in just a few examples, Washington is considering putting tariffs on roughly $40 billion in Chinese-made voice data receivers, computer memory modules, automatic data processors, and accessories for office equipment such as copiers and bank note dispensers - instantly making widely used goods more expensive.
Sohn said he thinks that China will retaliate against every US tariff and that the back-and-forth sparring will escalate until the U.S.is taxing all Chinese imports - $524 billion past year.
At the same time, the official said, the United States remains open to negotiations. But a year ago, we lost $375 billion in deficits, and we had, in my opinion, way over $500 billion in cash.
In a statement Trump said the tariffs were the result of an investigation which found China had engaged in unfair trade and intellectual property practices for many years. "My administration will not remain idle when those interests are under attack".
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"They want to make a deal", Trump said.
Australian Trade Minister Simon Birmingham warned the trade war between the United States and China would hurt consumers and would have "possible negative effects" on other nation's economies.
"Tariffs increase the cost of our United States operations, divert our resources, and disadvantage Apple compared to foreign competitors. And they can't take actions that entirely flout the rules of the global trading system", the official said.
The decision comes despite a Treasury invitation earlier this week to senior Chinese officials, including Vice Premier Liu He, for more talks to try to resolve trade differences between the world's two largest economies.
"The Liberal-National government will ensure we continue to have the backs of Australian industry".
While officials said the impact on the U.S. economy has been minimal, firms across the country report lost businesses, layoffs and possible bankruptcies as input costs rise and exports fall.
USA business groups reacted angrily to the announcement, saying the tariffs would raise consumer prices and threaten jobs. A USTR spokesman did not respond to queries about the tariffs.
"By choosing to unilaterally raise taxes on Americans, the cost of running a farm, factory or business will grow".
The list slated for tariffs originally included more than 6,000 items, but U.S. officials later removed about 300 types of items, including smart watches, bicycle helmets, play pens, high chairs and baby vehicle seats.
The Trump administration has demanded that China cut its $375 billion trade surplus with the United States, end policies aimed at acquiring US technologies and intellectual property and roll back high-tech industrial subsidies.