United States President Donald Trump says American tariffs on Chinese imports will come down "substantially" from the current rate of 145 per cent.
"It won't be that high, not going to be that high," he told an Oval Office press conference on Tuesday, local time.
Mr Trump said he believes a tariff deal with China could happen "pretty quickly," adding he isn't going to "play hardball" during negotiations.
"They're gonna do very well, and I think they're going to be happy, and we're gonna live together very happily and ideally work together," he said.
"So I think it's gonna work out very well."
His comments came after US Treasury Secretary Scott Bessent said in a speech on Tuesday that the ongoing tariffs showdown against China was unsustainable and that he expects a "de-escalation" in the trade war between the world's two largest economies.
But in a private speech in Washington for JPMorgan Chase, Mr Bessent also cautioned that talks between the US and China had yet to formally start.
Details of the speech were confirmed to The Associated Press by two people familiar with the remarks who insisted on anonymity to discuss them.
"I do say China is going to be a slog in terms of the negotiations," Mr Bessent said, according to a transcript obtained by AP.
"Neither side thinks the status quo is sustainable."
Washington to be 'very good' to Beijing
Mr Trump has placed import taxes of 145 per cent on China, which has countered with 125 per cent tariffs on US goods.
Washington has placed tariffs on several dozen countries, causing the stock market to stumble and interest rates to increase on US debt as investors worry about slower economic growth and higher inflationary pressures.
Asked about the China negotiations on Tuesday afternoon during the swearing in of SEC chair Paul Atkins, Mr Trump did not say whether he had spoken to Chinese President Xi Jinping.
However, he said he was not going to "play hardball with China" and expects a deal to be reached soon.
"They have to, and other countries have to, make a deal. And if they don't make a deal, we'll set the deal," Mr Trump said.
But quickly added, "We're gonna be very good to China."
The Trump administration has met for talks with counterparts from Japan, India, South Korea, the European Union, Canada and Mexico, among other nations.
But the US president has shown no public indications that he plans to pullback his baseline 10 per cent tariff, even as he has insisted he is looking for other nations to cut their own import taxes and remove any non-tariff barriers that the administration says have hindered exports from the US.
China calls on trade partners to oppose unilateral bullying
Beijing on Monday warned other countries against making trade deals with the US that could negatively impact China.
"China firmly opposes any party reaching a deal at the expense of China's interests," China's Commerce Ministry said in a statement.
"If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner. China is determined and capable of safeguarding its own rights and interests."
Mr Bessent said earlier this month the countries currently negotiating trade deals with the US should "approach China as a group" together with Washington.
The US tariffs on other countries amount to economic bullying, according to a statement from the Commerce Ministry attributed to an unnamed spokesperson.
"Appeasement cannot bring peace, and compromise cannot win respect," it added.
"For one's own temporary selfish interests, sacrificing the interests of others in exchange for so-called exemptions is like seeking the skin from a tiger. It will ultimately only fail on both ends and harm others without benefiting themselves."
China said it is open to talks with Washington but no meetings have been announced.
ABC/AP
