The two sides struck a "phase one" agreement in October and had hoped to have the deal in writing last week, but are still negotiating.
"China's going to have to make a deal that I like. If they don't, that's it. I'm very happy with China right now," Trump said during a press spray at a cabinet meeting. "They're paying us billions and billions. If we don't make a deal with China, I'll just raise the tariffs even higher."
He said he has a "good relationship" with China.
Beijing said Monday that the Vice Premier and chief trade negotiator Liu He had "constructive discussions" during a Saturday call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
"The two sides have engaged in constructive discussions around the respective core concerns of the first phase of the agreement and will continue to maintain close communication," the Chinese Commerce Ministry said.