"Now we've added another US$200 billion", Trump said in remarks that were initially off the record but which he later told reporters they could publish. "I hate to this, but behind that there is another [US]$267 billion ready to go on short notice if I want".
"That totally changes the equation", Trump said.
The Trump administration hopes to curtail the theft of US technology and intellectual property by Beijing, which Navarro says is the catalyst behind China's economic growth.
The United States has demanded that China better protect American intellectual property, cut its USA trade surplus, allow U.S. companies greater access to its markets and roll back its high-technology industrial subsidy programs.
Members of the public had until Thursday to comment on the administration's plan to slap tariffs on $200 billion of Chinese goods, ranging from bicycles and baseball gloves to digital cameras, paving the way for Trump to announce the tariffs as early as Friday. "Things can change rather quickly, so the trade war, if a lot of the threats do materialise, I think things will turn very quickly".
They say a full-blown trade war by 2021 could shrink America's annual economic output by an average of one-third of a percentage point and China's by two-tenths of a percentage point from 2019 through 2021.
Navarro said the administration would "love to have a fair relationship with China", the world's second-largest economy.
Trump has had Beijing in his crosshairs since he took office and has applied increasing pressure to try to convince it to change its policies, allow more United States imports and reduce the $335-billion U.S. trade deficit with China. To a certain extent its going to be up to China, Trump said.
China so far has retaliated dollar-for-dollar with tariffs of its own on U.S. goods but since it imports less than $200 billion in goods a year from the United States, it has run out of room to match the punitive measures.
"We will continue to talk to China".
The US has already imposed tariffs on $50bn in Chinese products, and Beijing has punched back with tariffs on $50bn in American goods.
Specifically, Kudlow said, the United States was seeking "zero tariffs, zero non-tariff barriers, zero subsidies, stop the IP theft, stop the technology transfer, allow Americans to own their own companies".
"Our concern with these tariffs is that the USA will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for United States consumers", Apple said in the letter. It would also cost roughly 350,000 to 400,000 jobs. "(Our) asks have not been satisfied", he said.