Just minutes after China appeared to offer Trump an olive branch in the trade wars, when as we reported moments ago it nuked Yuan shorts by hiking forward FX reserve requirements by 20% in the process effectively easing financial conditions in the US by sending the dollar sharply lower (and the Yuan higher), China surprised the market which took the PBOC announcement as a "risk on" signal, by releasing the proposed retaliation list to US tariffs, and announcing it will impose differentiated tariffs on $60 billion in US goods.

In a statement issued late Friday, the State Council, China’s cabinet, said China is preparing to impose duties at levels of 25%, 20%, 10% and 5% on some 5,207 American goods, and will be implemented as soon as the US enacts its own tariffs. Furthermore, the Chinese Government said it reserves the right for additional retaliation measures

Some of the products affected, per Reuters:

CHINA GOVT'S NEW PROPOSED TARIFFS ON U.S. GOODS INCLUDE SOYBEAN OIL, PEANUT OIL, CORN OIL, OLIVE OIL, MUTTON, DRIED, SMOKED AND SALTED BEEF, COFFEE, WHEAT FLOUR, SPIRITS; WINE, SEMICONDUCTORS, CHEMICAL PRODUCTS, LNG, SMALL AND MEDIUM-SIZED AIRPLANES, AUTOMOTIVE PARTS, LUMBER

More importantly, the Chinese list includes tariffs on some US aircraft, which may lead to pain for Boeing today, although according to the list only "small and medium-sized" airplanes will be affected.

According to the announcement, the measures are to guard its interest and to keep trade frictions from escalating, although the moment Trump sees that China is responding in kind, he will most likely flip out and demand that the next set of $200BN in tariffs be swiftly implemented.

“The implementation date of the taxation measures will be subject to the actions of the U.S., and China reserves the right to continue to introduce other countermeasures,” the State Council statement said. “Any unilateral threat or blackmail will only lead to intensification of conflicts and damage to the interests of all parties.”

On the news, futures which spiked earlier on the FX reserve requirement increase, have slumped back to almost unchanged, with China effectively negating the risk on effect from its currency intervention.

At the same time, the iShares China large-cap ETF turned negative after pushing modestly in the green earlier.