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Trump upset America's allies last week by vowing to slap tariffs of 25 percent on imported steel and 10 percent on aluminum.

"They had candid discussions about India-China bilateral relations and enhancing mutual exchanges", it said.

The European Union, Brazil and Argentina said overnight they should not be targeted or would seek exemptions, and Japan, South Korea also said they would seek exceptions. It urged the United States to withdraw the measures as quickly as possible.

While China's role could lose more than USA in a possible trade war because it is one who records surplus, Capital Economics consultancy recalls that United States has very few destinations to go to if it wants to stop buying from China, because Asian giant is by far world's largest supplier of several of products that United States acquires.

Trade tensions between the world's two largest economies have risen since Trump took office in 2017, and although China only accounts for a small fraction of US steel imports, its industrial expansion has helped produce a global glut of steel that has driven down prices.

Xi has visited 57 countries and received more than 110 foreign heads of state, Wang said, citing Xi's "leadership and charisma".

The trade gap has continued to rise since Trump entered the White House partly because the US economy is strong and American consumers have an appetite for imported products and the confidence to buy them.

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"Choosing a trade war is surely the wrong prescription, in the end you will only hurt others and yourself", Foreign Minister Wang Yi said.

During the meeting between Prime Minister Modi and President Xi Jinping in Xiamen in September a year ago, the two leaders had agreed that sound development of relations between India and China were a factor of stability amidst today's global uncertainties, and that the two countries should not allow their differences to become disputes, he noted. He blames persistent deficits on abusive practices by USA trading partners and on bad trade deals that put American companies at a disadvantage or encourage them to move factories overseas. "In the event of a trade war, China will make a justified and necessary response".

The official also expect higher US tariffs to put South Korean carmakers, Hyundai Motor and Kia Motors, at a disadvantage in the USA market as it would increase their costs.

But the tensions with the United States are clouding the outlook for exports, while a cooling property market may curb domestic demand for imported raw materials such as iron ore.

"I was pleased to see the president acknowledge the strong points I have been making to him".

Trump rattled financial markets last week by promising to slap big tariffs on imported steel and aluminum.

"China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States", Trump tweeted, without saying where the message had been conveyed.


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