It marks the latest warning shot in the continuing trade war between the two countries
Donald Trump has warned he is willing to hit all goods imported from China with tariffs.
The US President has already slapped levies of $34 billion (€29bn) on Chinese imports - including machinery, electronics and cars - with an additional $16bn (€13.5bn) of tariffs set to come into force soon.
China retaliated by hitting an equivalent amount of US goods with tariffs.
However, US officials were then asked by President Trump to identify $200bn (€172.7bn) worth of Chinese goods to be subject to a 10% tariff.
In an interview with CNBC, the US President claimed that his country has been ripped off by China for a long time.
He said: "We are being taken advantage of - I don't like it and I haven't liked it for many years.
"I don't want [China] to be scared - I want them to do well. I really like President Xi a lot... but it was really unfair."
When asked how far he was willing to go with tariffs, President Trump responded: "I'm ready to go to 500."
$500bn (€427bn) would represent virtually all Chinese imports to the US.
China has previously accused the Trump administration of 'behaving like a gang of hoodlums' with the escalating trade war.
Chinese authorities have filed a complaint to the World Trade Organisation over the the US tariffs.
President Trump has also hit other key allies with tariffs, with the EU and Canada having already retaliated to controversial steel and aluminium tariffs imposed by the US earlier this year.