President Trump vowed his administration will reach a "fair deal" with China on trade as he floats substantially reducing tariffs on Beijing.

U.S. President Donald Trump this week said his administration is talking with China to strike a tariff deal and that Chinese President Xi Jinping had called him, Time magazine reported, as Beijing has so far disputed the U.

Levies could be cut by more than half in some cases although President Trump hasn’t yet made a final decision.

Treasury Secretary Scott Bessent said President Trump will not reduce tariffs on China without an agreement by both governments to de-escalate their trade conflict.

The Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing, a source familiar with the matter said on Wednesday, adding that any action would not be made unilaterally.