Traders and financial professionals work on the floor of the New York Stock Exchange (NYSE) at the opening bell, August 2, 2018 in New York City.
The Finance Ministry on Friday accused the Trump administration of damaging the global economy after it proposed imposing 25 per cent duties on $200 billion of Chinese products in a dispute over Beijing's technology policy.
The statement said the date of implementation of the taxes will depend on the "actions of the United States side" and China reserves the right to apply "other countermeasures".
The threat came a day after Chinese officials appealed for dialogue based on "mutual respect", with Foreign Minister Wang Yi urging the United States on Thursday to remain "cool-headed".
Trump administration plans to lower vehicle emissions standards
That ignores the fact that more fuel-efficient vehicles are cheaper to operate since drivers have to buy less gas. California and 16 other states already have filed suit to block any change in the fuel efficiency rules.
President Trump has threatened to up the ante further by slapping £150bn ($200bn) worth of Chinese goods with levies of up to 25 percent.
"China is in trouble right now - their economy is lousy, investors are walking out, the currency is falling", Kudlow said, in an unusually strong condemnation of a trading partner.
On March 1, President Donald Trump announced that the US would be slapping a 25 percent tariff on all steel imports and a 10 percent tariff on all aluminum imports.
"I might think the $60 billion is a weak response to our $200 (billion)", he said, while admitting that "there is a lot they can do to damage our companies in China".
"The US side has repeatedly escalated the situation against the interests of both enterprises and consumers".