After the near collapse of trade talks with China last week, Mr Trump on Friday imposed a hefty duty on import of Chinese products from 10 per cent to 25 per cent worth more than Dollars 200 billion and asking for a similar increase on tariff on the rest of the Chinese import of over USD 300 billion.
China has said it will impose tariffs on $60bn (£46bn) of United States goods from 1 June, extending a bilateral trade war. "I don't know. That will take some time and then of course the president's going to have to make the final decision on that", Mr Kudlow said.
"The core underlying fear in the eyes of tech investors is around what this move as well as a retaliation move from the Chinese can do to the tech food chain, semi stocks (Intel, Nvidia, etc.), and clearly Apple, which heavily relies on China both on the supply (Foxconn) as well as demand front", Ives said. "Would be wise for them to act now, but love collecting BIG TARIFFS!"
US benchmark 10-year Treasury note yield inched down to 2.441%, partly as a safe haven but also on speculation that the escalating trade war would put more pressure on global growth and thus keep major central banks accommodative. Three days ago, the president raised tariffs to 25 percent on approximately $200 billion on Chinese goods. The United States is pressing China to change its policies on protections for intellectual property, as well as massive subsidies for state-owned firms, and to reduce the yawning trade deficit.
Bitcoin jumped more than 10pc on Saturday and marked its nine-month high of $7,585.00 on Sunday before paring the gains.
Trump has insisted that China has picked up the tab for his tariff campaign, not American consumers.
Beijing matched Trump's earlier 25% tariff on $50 billion of American goods.
Mr Kudlow also said that Mr Trump and China's President, Xi Jingping, may meet in late June at the G20 worldwide conference in Japan. "But we have to get through a lot of issues".
But actually it's American businesses that will pay the tariffs, and in many cases, pass the expense on to their American customers.
Trump might meet his Chinese counterpart, Xi Jinping, during next month's meeting of the Group of 20 major economies in Osaka, Japan, his economic adviser said on Sunday.
Still, he argued that China's Gross Domestic Product will ultimately suffer more from the recent 15 percent tariff hike - which went into effect Friday - because of a "diminishing export market".
The toughening stances on both sides in their trade war showed that the two powers are ready to play hardball to protect their national interests.
The next escalation could come within weeks, as USA regulators prepare to follow through on Trump's threat to extend penalty tariffs to all Chinese goods.
Washington wants Beijing to roll back plans for government-led creation of Chinese global competitors in robotics and other technology that its trading partners say violate its free-trade commitments.