Talks broke down Friday between the two countries after two days of negotiations because China's reluctance to concede United States demand that it must codify into law the changes it was undertaking to make as part of the deal and detail them, which Beijing saw as a sovereignty issue.
The impasse left investors bracing for retaliation by China for Washington's increase on Friday of tariffs on $200 billion worth of Chinese goods.
Kudlow told Wallace that Trump and China's President Xi Jinping could meet next month on the sidelines of the Group of 20 summit in Japan to discuss their differences on trade, but no new talks are scheduled.
Kudlow, however, said the economic impact of placing tariffs on all Chinese imports would be to cut economic growth 0.2 percentage points, "a very modest number".
The White House's top economic adviser has admitted US businesses will suffer from tariffs on Chinese goods, contradicting US President Donald Trump's widely denounced claim that it will only be China that pays.
Past year the United States imposed a 10% tariff on $200bn worth of Chinese products - including fish, handbags, clothing and footwear. "China should not retaliate-will only get worse!"
The President additionally said that China primarily foots the bill for the tariffs in a press conference last week.
Wei Jianguo, a former vice-minister at the Ministry of Commerce who handled foreign trade, told the South China Morning Post that China was prepared for a long trade war. "They LOVE ripping off America!", Trump said.
Trump has ordered Lighthizer to begin imposing tariffs on all remaining imports from China, a move that would affect about an additional $300 billion worth of goods.
The offshore Chinese yuan fell to its lowest levels in more than four months at 6.88 to the dollar.
"The president and his administration have failed to realize we're stronger when we work with our allies on every issue - China included", she said on CNN's "State of the Union".
"The only problem is that they know I am going to win (best economy & employment numbers in USA history, & much more), and the deal will become far worse for them if it has to be negotiated in my second term. Buyers of product can make it themselves in the U.S. (ideal), or buy it from non-Tariffed countries.", he said.
Rep. Seth Moulton, who entered the presidential race last month, said the U.S.
While supporters laud Trump as a tough negotiator, free-trade-minded Republicans have warned that the tariffs could do real damage to the economy, and many farmers - including Trump supporters - say the tariffs have hit their bottom line.
This latest round of tariffs will add another $500 a year in costs for the average American household, says Katheryn Russ, an economics professor at the University of California at Davis.
Trump's surprise May 5 tariff announcement renewed anxiety in financial markets about global economic growth.
The president doubled down on his argument on Sunday, tweeting that the U.S. would be "taking in Tens of Billions of Dollars in Tariffs from China", while advising American consumers who have been concerned by the lack of imported goods to buy them somewhere else or take matters into their own hands and produce them in the US.