US President Donald Trump has signaled a major U-turn on his trade war with China, saying the high tariffs on Chinese goods will “come down substantially, but it won’t be zero.”

Treasury Secretary Scott Bessent told private investors during a meeting on Tuesday that the spiraling trade war between the United States and China was unsustainable and that he expects a "de-escalation" soon, according to a report from the Associated Press (AP). Newsweek has reached out to the White House for comment on Tuesday.

President Trump says he wants Xi Jinping, China’s leader, to call him to talk tariffs. Mr. Xi is ghosting Mr. Trump, and markets are plummeting.