Trump says he would love to make a trade deal with China

U.S. President Donald Trump said on Thursday that he would love to get a deal with China to end an escalating trade war.

Trump made the comments during a Cabinet meeting opened to press. U.S. Treasury Secretary Scott Bessent said during the meeting that as they settle deals with countries, it will bring more certainty on trade policy.

Trump claimed victory over Europe in the US tariffs war but acknowledged a “cost” to his surging trade offensive against superpower rival China as markets plunged again Thursday.

Trump sought a victory lap at a White House cabinet meeting, saying the European Union had backed off from imposing retaliatory tariffs because of his tough stance on China.

“They were very smart. They were ready to announce retaliation. And then they heard about what we did with respect to China… and they said, you know, ‘We’re going to hold back a little bit,'” he said.

Trump acknowledged “a transition cost and transition problems,” but dismissed global market turmoil. “In the end it’s going to be a beautiful thing.”

Treasury Secretary Scott Bessent was upbeat, even as Wall Street encountered dramatic turbulence, the Nasdaq briefly dropping more than six percent.

“I don’t see anything unusual today,” Bessent told reporters, touting better than expected US inflation numbers and other economic indicators.

Thursday’s market losses followed giddy gains on Wednesday in the aftermath of a stunning Trump climbdown, where he maintained a 10 percent blanket tariff on most countries but paused plans for tariffs of 20 percent on the EU and even higher levies on multiple other trade partners.

The dialing back of the planned global trade war left most of the focus on China, the world’s number two economy after the United States.

The White House on Thursday clarified that levies on Chinese imports are now at a staggering total of 145 percent — not the previously reported 125 percent.

Read More: China bites back at US tariffs by curbing Hollywood imports

This was because the latest tariff hike comes on top of a 20 percent tariff already imposed earlier. China has retaliated with levies of 84 percent on US imports.

In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.

“We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.

Trump brushed off Beijing’s clampdown on US films, saying, “I think I’ve heard of worse things.”