He also said that "Apple could ultimately mitigate any tariff impacts" if Trump goes ahead with the plan.
If there is no progress, Trump is prepared to raise tariffs on $200 billion of imports to 25 percent from current levels of 10 percent, and could add tariffs on another $267 billion of imports, Kudlow said.
Since summer, trade tensions have simmered between Washington and Beijing as Trump first announced $50 billion in additional tariffs on Chinese products, arguing that the Asian nation was treating the U.S.
The comments ran counter to recent speculation about a possible deal when Trump meets Chinese President Xi Jinping at the G20 summit in Buenos Aires this week.
White House spokeswoman Sarah Huckabee Sanders called the trip an opportunity for the president to cement relations with other world leaders and advance a global economic system based on "free, fair and reciprocal trade".
European auto stocks extended losses on Tuesday after a German magazine reported that U.S. President Donald Trump could impose tariffs on imported cars starting next week.
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Despite using contract manufacturers to make most of its products overseas, Apple has also sought to emphasize its contribution to the USA economy, saying it plans to spend about $55 billion in 2018 with its US -based suppliers. Could they not authorize new phones for sale in the country? Chinese officials responded with retaliatory tariffs on American goods.
Late on Monday, though, Mr Trump warned that he was prepared to raise the stakes even higher, hitting Apple phones and laptops made in China if Mr Xi did not offer what he considered a "fair deal" with the U.S. on trade. In 2017, China accounted for 61.6% of electronics imports into the United States, far exceeding South Korea's 4.5%, according to data from trade intelligence tracker PIERS.
Last week, Washington proposed stepping up scrutiny over technology exports in 14 key high-tech areas including artificial intelligence and microprocessor technology, a move many analysts believe was directly aimed at China.
Latest headlines revive concerns over trade conflict between the USA and China.
On the macro front, a report from the U.S. Conference Board at 10:00 a.m. ET is expected to show that its consumer confidence index slipped to 135.9 in November from a reading of 137.9 in the prior month.
"They have to open up China to the United States".