Trump said that the new tariff would go into effect if the Chinese government did not lower recently announced tariffs on United States goods and failed to address the theft of U.S. intellectual property by Chinese companies.
On Friday, I announced plans for tariffs on $50 billion worth of imports from China.
To respond to Trump's threat to impose tariffs on as much as $250 billion worth of Chinese goods, Beijing would have to find other ways to respond.
The US says the new tariffs, which would be set at a rate of 10 percent, are in response to tariffs from China last week on $34 billion in US goods at a 25 percent rate.
He said the USA would impose tariffs on another $200 billion after that if Beijing retaliates.
Benchmark U.S. crude lost 88 cents to $64.97 per barrel in electronic trading on the New York Mercantile Exchange.
Many investors feel smaller and more USA -focused companies are less vulnerable in the event of a major trade dispute.
In response, China announced tariffs on $34bn of U.S. goods including agricultural products, cars and marine products which will also take effect from 6 July.
Gulf oil producers may benefit from China's threat to impose import tariffs on USA crude and other energy products, as key exporters meet to discuss production increases later this week.
China's commerce ministry condemned the announcement, saying the United States was engaging in a "practice of extreme pressure and blackmail".
However, "history shows that there are various other measures [China] could take to inflict pain on USA companies, especially those present in China, including scaled up health, safety and tax checks, delaying the imports of goods, and boycotts of U.S. goods", he said.
Stephen Innes, head of Asia-Pacific trading at Oanda, said Trump's latest move goes "beyond "tit-for-tat" levels and, predictably, investors are running for cover under the haven umbrellas as global equity indices are crumbling under the weight of an escalating trade war".
Trump issued a statement this evening noting that "unfortunately" China "apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology".
Shi Yinhong, a professor of worldwide relations at Renmin University of China, said that with the world's two largest economies now embroiled in "a semi economic cold war", Beijing faced the challenge of getting Trump back to the negotiating table.
Tensions were also stoked by the US Senate's decision Monday to reimpose a seven-year ban on sales of US high-tech chips to Chinese telecom firm ZTE, which had narrowly escaped collapse under a compromise deal announced by the Trump administration. But it appears that Trump and Kudlow were more interested in Cook's promise that Apple will contribute $350 billion to the US economy over the next five years.
For its part, China said it "doesn't want a trade war" but has to "fight back strongly", a Commerce Ministry statement said on Saturday.