New York (CNN Business) The US-China trade war is rocking America's manufacturing industry. It's denting profits for major companies like Hasbro and Caterpillar. And farmers are hurting badly.

Yet Peter Navarro, trade adviser to President Donald Trump, downplayed the pain from the trade war and stressed the need to stay unified against China.

"We are dealing with a strategic rival -- and they are trying to buckle our knees," Navarro told CNN's Jim Sciutto at the CITIZEN by CNN conference in New York.

Navarro was quick to say China's economy is "hurting" -- and it is, with growth slowing to the weakest pace since 1992 -- but refused to acknowledge the damage at home.

"We are at the lowest unemployment rate since man walked on the moon," Navarro said.