Trump has also demanded that the European Union cut its 10 percent tariffs on imported cars, and his administration is conducting a national security study that could lead to a 25 percent US tariff on imported vehicles.
Kudlow said on Wednesday that Xi was "holding the game up".
Kudlow also said more tax legislation could be coming.
Kudlow said China could resolve the dispute "this afternoon" by simply cutting tariffs, eliminating non-tariff barriers, and stopping the practice of stealing U.S. technology through forced transfers.
In a televised interview on Wednesday, Kudlow blamed China for an impasse in trade negotiations, which began in response to the Trump administration's policy of unilaterally imposing tariffs to pressure China.
The trade negotiations between the U.S. and China aimed at defusing tensions have stalled, said Kudlow.
Trump has said the tariffs are an effort to protect American workers from unfair Chinese technology and trade practices, though experts have warned they could harm the USA economy.
Speaking on the rocky negotiations, Kudlow insisted that the US administration was waiting on a move from Xi, saying that "the ball is in his court".
Kudlow's remarks, delivered at the CNBC Institutional Investor Delivering Alpha Conference, come as many from Wall Street to Washington have said the economic recovery - in its ninth year - is long in the tooth.
He also commented on the talks scheduled for next week between Trump and European Commission President Jean-Claude Juncker.
On July 10, the Trump administration proposed a new wave of tariffs on $200 billion worth of Chinese goods. "The ball is in his court".
These included cutting tariff and non-tariff barriers to imports, ending the "theft" of intellectual property and allowing full foreign ownership of companies operating in China, Kudlow said.
On the confrontation with Europe, which also has retaliated against United States metals duties, and faces a threat of tariffs on auto exports, Kudlow said he believes the European Union is considering a compromise offer.