He predicted that the USA market will "go up dramatically" after the "horrible Trade Deals" are successfully renegotiated.
The two countries have been embroiled for months in a trade conflict that has threatened to hurt consumers in both countries. Neither side is showing any sign of backing down.
US companies are putting in place measures to cushion the impact of the trade row, including price hikes, and a number of companies - from industrial firms to home furnishers and toymakers - have said they will move some sourcing and manufacturing outside of China.
"Tariffs have had a tremendous positive impact on our Steel Industry", he tweeted.
After talks between Washington and Beijing broke down in May, some see this as the Trump administration's way of forcing China back to the negotiating table.
Canada's global trade deficit, for instance, shrank to $481 million in June, down from $2.1 billion the month before, according to Statistics Canada. "So, the basic foundation of US-China cooperation is very strong", he added.
The Chinese government calls its response 'rational'.
The United States and China implemented tariffs on US$34 billion worth of each others' goods in July.
In Twitter posts on Sunday, Trump said the US' punitive tariffs were "working big time".
"We are using them to negotiate fair trade deals and, if countries are still unwilling to negotiate, they will pay us vast sums of money in the form of Tariffs", he wrote. Plants are opening all over the U.S., Steelworkers are working again, and big dollars are flowing into our Treasury. Last year, China imported about $130 billion of USA goods.
Including the new tariffs already in force, China has now identified nearly 6,000 items for higher import taxes, including liquid natural gas, soybeans, and other products. That covers more than two-thirds of the value of China's imports from the USA, but it excludes products such as big aeroplanes and some computer chips, which China struggles to produce domestically.
But China is somewhat limited with the extent of what tit-for-tat trade measures are at its disposal, as it exports far more goods to the United States than it imports.
China's stocks were lower on Monday as Beijing's latest tariff threats escalated the tit-for-tat Sino-U.S. trade war, while the yuan weakened after briefly edging up despite the central bank's latest efforts to shore up the tumbling currency.
While U.S. crude exports to China appear to have held up in August, with about 342,000 bpd expected to arrive, they seem set for a slump in September.
Kudlow, a devout free trade supporter who criticized Trump's approach before joining the White House this year, has tried to steer the president toward an embrace of an idea that every country remove all of their tariffs in a way that would still achieve conservative political goals.
Trump has at times said he likes this idea, and some White House officials had hoped that this might cool conservative angst in Congress.
Trump told an audience of diehard supporters on Saturday that playing hardball on trade is "my thing".
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