An attempt at reassurance from Treasury Secretary Steven Mnuchin didn't improve sentiment.
The disagreements were also about US tariffs on $34 billion worth of Chinese goods that are scheduled to go into effect on July 6, which China said would trigger retaliation involving its imports of American soybeans and motor vehicles.
Meanwhile, later this week, the Treasury Department is due to unveil a proposal on investment and export restrictions.
Not wanting to be outdone, Trump asked USA trade officials to consider tariffs on an additional US$100bn of Chinese exports to the United States, before releasing a revised list on 15 June covering the same amount but more heavily targeting intermediate inputs which could damage supply chains for U.S. companies.
The Wall Street Journal also said the U.S. Commerce Department and National Security Council were proposing "enhanced" export controls to keep such technologies from being shipped to China. The leaker either doesn't exist or know the subject very well.More news: Belgium's De Bruyne set to miss 'celebration' England clash
"Statement will be out not specific to China but to all countries that are trying to steal our technology", Mnuchin said, even though that seems to contradict the White House statement issued May 29.
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A.
"Authorities around the world will see the secretary as someone to go to for a thoughtful, rational, reasonable conversation about challenges that we face mutually or changes in the business cycle or multi-lateral policy changes", said Tim Adams, a former Treasury undersecretary in the George W. Bush administration."They see him as something of a point of stability".
Even before China announced the decision, trump warned that, in the case of the adoption of the Beijing reflex action, the United States will again increase taxes.
The economy "is going to a handsome place right now", Navarro said on CNBC.
USA defence strategists are broadly concerned by China's rapid advances in military technology and its increasing ability to project its offensive military might far into the Pacific and Indian Ocean regions, where the United States has been uncontested since World War II. Congress also is looking at ways to tighten the investment review process.More news: USA may use emergency law against China investments, says Bloomberg
Investment plunged more than 90% in the first five months of 2018 compared with the same period a year earlier, according to a report last week by Rhodium Group, a research firm that tracks Chinese foreign investment.
New export controls would make it more hard for U.S. firms to sell technology to China if Washington deems it to be "industrially significant".
The focus is thought to be on "Made in China 2025", which is Beijing's plan to dominate industries of the future such as robotics, electric cars and aerospace.
As tensions continue to escalate, trade experts warn there are fewer options to resolve the dispute.
Vice Premier Liu He-President Xi Jinping's top economic adviser-said China and the European Union had agreed to defend the multilateral trading system, following economic talks Monday in Beijing.More news: Diego Maradona During Argentina v Nigeria Game