The Trump administration earlier this year imposed 10 per cent duties on aluminium and 25 per cent on steel after finding imports of the metals pose a risk to national security.
A Chinese emissary is warning at a meeting of US state governors that a trade war with his country won't be easily won.
-China trade war escalates, hoping the two countries work out their differences before the full impact of China's retaliatory tariffs hits American soybean and pork producers.
Beijing also has filed a complaint in the World Trade Organization against the United States actions.
Political leaders in agricultural states fear volatility in commodity markets as President Donald Trump contemplates additional new tariffs.
"There is still time to prevent conflict and chaos", said Tusk. A classic example of this is the Smoot-Hawley Tariff which was imposed in 1929 to increase the tariff on over 20,000 imported goods which provoked retaliatory tariffs from partners and eventually culminated in an economic slowdown and later contributed to the Great Depression.
Last week, Tusk lambasted Trump's criticism of European allies and urged him to remember who his friends are when he met Putin. China and the United States had already exchanged 25 per cent tariffs on US$34 billion of each other's goods. Washington is accusing China of hurting U.S. companies by stealing or pressuring foreign enterprises to hand over technology.
President Trump has slapped tariffs on imported steel and aluminum, provoking retaliatory measures by Canada, Mexico and USA allies in the European Union.
"The US' unilateral initiation of a trade war has no worldwide legal basis at all", the ministry said last week in a point-by-point response to the US statement under Section 301.
China and India also feel that the WTO is unbalanced and treats them unfairly, the report said.
Asked about Kudlow's comments, China's foreign ministry spokeswoman Hua Chunying said: "That the relevant United States official unexpectedly distorted the facts and made bogus accusations is shocking and beyond imagination".
Beijing has tried, so far without success, to recruit European support in its dispute with Washington.
And last week the US Trade Representative announced the list of another $200 billion in Chinese export goods that will be targeted for 10 percent tariffs as soon as September.
European envoys say they have sensed a greater urgency from China since past year to find like-minded countries willing to stand up against Trump's "America First" policies.
"Our summit is not directed at any third party", said Li. If China does not abide by the WTO rules, why is China fully fulfilling its WTO commitments?
Several companies - including Total and Peugeot of France, and Russia's Lukoil - have said they are preparing to exit Iran ahead of United States deadlines, the last of which is November 4.
More than 500 disputes have been brought to the WTO since 1995, the report said.
"It gets damaging when you get into these very frictional relationships where people are trying to measure this tariff or that tariff", said Democratic Gov. John Hickenlooper of Colorado.
None of the executives raised concerns about intellectual property during the portion of the meeting reporters were allowed to see.