The Trump administration also said the US will impose travel bans on employees of the Chinese technology giant Huawei and other Chinese companies the US believes is assisting governments in cracking down on human rights.
The Kremlin says the move amounts to a full-scale trade war and an end to hopes for better ties with the Trump administration.
President Vladimir Putin's order to reduce US diplomatic staff in response to new sanctions is carefully calibrated to avoid directly affecting US investment in Russia or burning bridges with President Donald Trump.
James Mattis, the US Secretary of Defense, says that he did not see any possible military collaboration with Russia now while reaffirming the Trump administration's commitment to engaging politically with Russia.
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