US Treasury yields fall as Trump says US will slap tariff on up to $50 billion in Chinese goods

U.S. government debt prices rose on the final trading day of the week, as investors weighed an announcement by the Trump administration to possibly implement a 25 percent tariff on up to $50 billion in Chinese imports.

The yield on the benchmark 10-year Treasury note traded at 2.926 percent at 2:59 p.m. ET, while the yield on the 30-year Treasury bond slipped to 3.047 percent. Bond yields move inversely to prices.

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In a statement Friday, President Donald Trump said the measures would affect Chinese goods "that contain industrially significant technologies," without specifying those products. He added that the action comes "in light of China's theft of intellectual property and technology and its other unfair trade practices."

Trump also said the U.S. would impose more tariffs on Chinese goods if China retaliates with duties of its own on American products.

China promptly responded to the Trump administration's announcement, with the Chinese Commerce Ministry saying it will implement tariffs on the same scale as the U.S.

Tensions between the U.S. and several of its key trading partners have been simmering recently as the Trump administration tries to fight trade practices or deals it thinks are unfair to the U.S.

"I understand the end goal with our tariff policy in shaking things up and trying to open up foreign markets but I'm not sure we are any closer to achieving our goals as we get hit back with taxes on us," said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

—CNBC's Yen Nee Lee contributed to this report