The White House signals progress on potential U.S.-China trade deal

The White House said Tuesday that Trump is “doing very well in respect to a potential trade deal with China,” to calm jittery financial markets and reassure investors that progress with Beijing could be just around the corner.

At a press briefing in Washington, press secretary Karoline Leavitt said she spoke with President Trump about the status of talks and that “The president and the administration are setting the stage for a deal with China,” Leavitt added. “We feel everyone involved wants to see a trade deal happen, and the ball is moving in the right direction.”

The dispute has seen the U.S. impose a 125% “reciprocal” tariff on Chinese imports and a separate 20% levy on goods from China aimed at slowing the flow of fentanyl into the United States. In response, China has applied its own retaliatory duties on American products, heightening fears of an outright trade war between the world’s two largest economies.

Despite those measures, Trump has rolled back other “reciprocal” tariffs on dozens of countries to a 10% rate for a 90‑day negotiating window. In recent days, he has struck a noticeably softer tone toward China, expressing optimism about striking a deal and pointing to his personal rapport with President Xi as a potential advantage.

The White House declined to confirm whether Trump has spoken with Xi Jinping

Leavitt told reporters on Tuesday that the administration has received 18 separate proposals from other nations as part of its broader trade discussions. Bessent previously noted that the White House is focused on securing agreements with 15 major economies, naming Japan, South Korea, and the European Union as top priorities.

Leavitt declined to say whether Trump has spoken directly with Chinese President Xi Jinping. She also would not comment on remarks made earlier in the day by Treasury Secretary Scott Bessent at a private investors’ meeting in Washington, where he predicted a “de‑escalation” of the trade war. At that JPMorgan Chase‑hosted event, Bessent warned, “No one thinks the current status quo is sustainable,” reflecting widespread concern that the widening dispute could dent global growth.

Bessent underscored that the current tariff levels cannot hold. He said cooling tensions in the coming months could ease strain on markets but cautioned that a more comprehensive agreement may require additional time to negotiate.

He argued that China’s economic model, which he says has prioritized manufacturing over consumer growth, has put the U.S. at a disadvantage. Any lasting agreement, he said, must rebalance trade to strengthen American manufacturing capacity.

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