China's Commerce Ministry responded swiftly, saying it would safeguard China's "core interests", and accusing the US of breaking the spirit of an agreement reached between trade negotiators a fortnight ago.

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"We feel both surprised and unsurprised at the tactical statement issued by the White House. This is obviously contrary to the consensus reached between the two sides in Washington not long ago," the ministry said.

China's top economic tsar, Vice-Premier Liu He, had said on May 20 that both sides had pledged not to engage in a trade war.

Trump's Treasury Secretary Stephen Mnuchin had also said the trade war was "on hold".

But with US Commerce Secretary Wilbur Ross arriving in Beijing on June 2 for further negotiations the latest statement is seen as a pressure tactic.

Lowy Institute senior analyst Richard McGregor said: "Clearly Trump is embarrassed by criticism that China had run rings around him."

After the last round of talks, critics feared Trump had abandoned intellectual property protection or Washington's initial demand in March that Beijing curb its 'Made in China 2025' industrial policy that promotes world-beating Chinese brands in high-tech manufacturing.

Instead, a deal was agreed for China to increase imports of US energy, agricultural, health and high-tech products and financial services to reduce the trade deficit.

Chinese media noted such a deal with the US could see some Australian imports sidelined, including beef and wine, which had gained preferential access under Australia's Free Trade Agreement with China.

McGregor said the Trump deal would be "a lose, lose for Australia."

"There is no doubt it is a net negative for Australia, it is managed trade in commodities that are our strengths."

The Financial Times reported that Washington wanted Beijing to sign long-term contracts for US energy and agricultural products including LNG and beef.

McGregor noted that Trump's erratic trade policy had been "a diplomatic windfall for the Chinese", as traditional US allies saw that "a trade war with China is a trade war with Asia and the world."

China held fruitful discussions with German Chancellor Angela Merkel in Beijing last week on strengthening the rules of the free trade system, and has improved diplomacy with Japan, because of the uncertainty created by Trump's tariffs threats.

McGregor said mutual support for multilateral trade could also provide "a bridge with China" for the Turnbull government, and one way to repair the bilateral relationship.