The US President said he was ready to slap levies on $500billion worth of products – the total amount China sold to the US last year.
In an interview with CNBC, Mr Trump warned: “I’m ready to go to 500.”
The president’s latest threat comes after Washington imposed tariffs on $34bn of Chinese products, which Beijing met with retaliatory levies of its own.
Donald Trump is also fighting a tit-for-tat trade war against the US’ traditional allies in North America and Europe.
In the interview which aired today, Mr Trump raged other countries are “taking advantage” of the US on trade.
He said: “I don’t like it, and I haven’t liked it for many years.
“China, with $507bn a year in deficits. With the EU, $151bn.
“With Mexico, $120bn. Who would think Mexico? Mexico is making a fortune.
“I could go through every country.
“Ultimately what I’m doing is making it so it’s right.
“We have been ripped off by China for a long time, and I told that to President Xi.”
Mr Trump went on to say he is willing to escalate the trade war with Beijing, which exported $505.5bn worth of goods to the US in 2017.
By comparison, the US sent $129.9bn in goods to China during the same period.
But as the tit-for-tat tariffs between the US and China threaten to ramp up, a top White House economic advisor claimed the EU is preparing to sue for peace in its burgeoning trade war with Washington.
European Commission President Jean-Claude Juncker is scheduled to visit the White House on July 25, and Larry Kudlow suggested the trip would include “a very important free trade offer” from Brussels.
Relations between the EU and US has been stretched to breaking point in recent months after Mr Trump’s administration imposed 20 percent tariffs on steel and aluminium in June.
The bloc quickly responded with its own levies, including duties on bourbon, jeans and motorbikes – as well as steel and aluminium.
The US leader has threatened to expand his tariffs to cover European cars, a move which has caused great concern in Germany.
Speaking in a separate CNBC interview, Mr Kudlow said: “I am told through sources, including our ambassadors, that Angela Merkel has been working on that, shaking up the EU.
“The President has put things on the table. The Europeans are looking at them, okay? And we may be pleasantly surprised.”