Germany hopes that an escalation of the trade dispute between the United States and China can be avoided, Economy Minister Peter Altmaier said on Monday, adding that all parties should be careful with implementing unilateral decisions.

U.S. President Donald Trump has threatened to ratchet up tariffs on $200 billion worth of imports from China, escalating the dispute marked by tit-for-tat duties between Washington and Beijing.

"We all hope that the trade conflict between the U.S. and China can be resolved because it doesn't have any positive consequences for anyone," Altmaier said.

"We need a rules-based trade order, we need open markets, we need fairness and a level playing field i.e. equal rights for companies from all countries involved," Altmaier added.