Wide-ranging tariffs on goods made in China may also provoke a backlash from US retailers such as Walmart Inc. and Target Corp.
China has expressed firm opposition to USA tariffs on steel and aluminum imports, saying the move will seriously undermine global trade order.
Last week, Trump announced that he would impose 25% import duties on steel and 10% on aluminum to protect local producers. China has already reduced steel exports to the U.S. to a trickle in response to stronger demand at home.
The U.S. president argued that "dumping" of cheap imports is eroding U.S manufacturers' ability to survive.
Trump is also considering potential trade sanctions against China under a "section 301" investigation into its intellectual property practices and pressure on foreign companies for technology transfers.
The group also includes Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India and Pakistan, and China has sought to use it to ensure security along its Central Asian border, for example, by holding joint anti-terrorism exercises.
"A trade war is never the right solution", Wang said at a briefing on the sidelines of the congress.
"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 a press conference, adding that "China will certainly make an appropriate and necessary response".
Trump has complained about low-priced Chinese exports of steel and aluminum, but the latest move was likely to hit Japan and South Korea harder.
Trump aide quits over imposition of steel tariff
She mentions "national security", i.e. not wanting a trade dispute to alienate important allies. Chamber of Commerce raising the specter of a global trade war.
He said he hoped China and the United States would have "a calm and constructive dialogue as equals".
"We continue to be of the view that the European Union should be excluded from these measures. Many Americans have also opened trade companies in China", said Kevin, who wouldn't give his last name.
By restricting the amount of cheap materials entering the country, Trump is essentially handing more business to local manufacturing - but that could increase the price of American-made products and lead to less competition in the sector.
"Just as these Chinese leaders have been exploiting American weakness by cheating in the trade arena, they will acknowledge the strength and resoluteness of Trump and rein in their mercantilist impulses", Navarro and now-Commerce Secretary Wilbur Ross wrote in an economic paper for the Trump 2016 election campaign.
In the years since China was allowed into the World Trade Organization in 2001, its global expansion has diminished its dependence on the U.S.as a consumer market, argued Ryan Hass, a fellow at Brookings Institution's John L. Thornton China Center and the Center for East Asia Policy Studies, in a recent post.
The world's two largest economies "should strive to be partners in cooperation", Wang said. Trump, who has claimed that the United States is being taken advantage of by its trading partners, in late January imposed broad tariffs on imported solar panels and large washing machines.
This is "the general and irresistible trend" and is in the long-term interests of those countries, he added.
Senior foreign affairs officials from the four countries met late past year to revive talks between the four democracies on the basis of "shared values and principles", in a move widely viewed as responding to China's growing assertiveness.
Mr Trump said the United States is going to stop the trans-shipping.
The remaining 11 countries in the agreement signed a revamped version of the trade pact Thursday in Santiago de Chile.