The Trump administration said it's weighing whether to increase the proposed tariff on $200 billion of Chinese goods to 25 percent from 10 percent, stepping up pressure on Beijing to change its trade practices.
Geng said at a news conference, "we advise the United States to be level-headed and avoid simply acting on impulse".
The asymmetric economic and financial performance of the United States and China has convinced the White House it has "escalation dominance" and should press home its advantage.
'If we're going to use tariffs, this gives us more flexibility and it's a more meaningful threat,' he said, adding that Trump's pressure strategy will not work if he does not resolve trade disputes with USA allies such as the European Union, Mexico and Canada.
The threat of US auto tariffs was placed on hold July 26 after Trump and Juncker agreed to refrain from "unilateral actions" while European Union and the United States endeavor to negotiate a trade pact.
White House officials had hoped Trump's latest threat would frighten Chinese officials into negotiations, where Trump aims to secure more favorable terms for USA manufacturers in one of the world's largest marketplaces.
Participants at the meeting in Geneva on July 31 said they are considering an array of options, including an appeal to the World Trade Organization's dispute settlement system and the imposition of retaliatory tariffs against US goods.
Equity markets are under pressure, credit spreads are wider, and bond yields are lower as a result.
Lu Xiang, an expert on U.S. After the earlier tariffs $34 billion of US goods, about $120 billion is available for retaliation.
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This is down nearly 16 percent from the June peak, a period that coincides with the ramping up of tariffs by the United States, coupled with increasingly bellicose rhetoric.
US Trade Representative Robert Lighthizer said Trump directed the increase from a previously proposed 10 per cent duty because China has refused to meet US demands and has imposed retaliatory tariffs on US goods.
U.S. Trade Representative Robert Lighthizer said his agency is seeking comments from industry about the proposed tariffs, with a deadline of September 5.
According to the Petersen Institute of International Economics, more than 90% of the products on the USA tariffs list are made up of intermediate inputs or capital equipment.
American companies have started to feel the pinch as well from global steel and aluminum tariffs and the first tranche of China-specific duties that cover just $34 billion of imports.
Word late on Tuesday that the Trump administration was poised to escalate a trade war with China has been confirmed by the White House, with a spokeswoman saying that the president is "going to hold their feet to the fire". It's a "race to the bottom that will harm American consumers, farmers and USA industry".
"Well, let's put it into arithmetic perspective". It said retaliatory duties of between 5 and 25 per cent will be imposed on 5,207 products "if the US side persists in putting its tariff measures into effect".
That fell apart shortly after it was announced by USA officials and amid acrimony in the negotiating team sent to Beijing due to disagreements over the concessions that would be made to China.
"If the United States takes further measures that escalate the situation, China will definitely fight back", said Geng. But Trump has urged patience, promising his approach will work if lawmakers and business leaders fall in line and give him more time to negotiate.