Donald Trump said his administration plans to speak with China, raising the possibility of a potential reprieve on a 10% tariff set to take effect in hours after he delayed levies on Canada and Mexico.
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Speaking to reporters in Washington on Monday, Trump said talks with China would take place “probably over the next 24 hours.” During the weekend, he announced that tariffs on China would take effect at 12:01 a.m. on Tuesday.
“If we can’t make a deal with China, then the tariffs will be very, very substantial,” Trump said.
The Hang Seng China Enterprises Index, which tracks Chinese stocks traded in Hong Kong, rose as much as 3.6% on Tuesday. The offshore yuan rallied nearly 1% from Monday’s nadir to trade around 7.31 per dollar. The onshore markets will reopen on Wednesday following the Chinese New Year break.
White House Press Secretary Karoline Leavitt later told Fox News there’s a plan for Trump to speak with Chinese President Xi Jinping about “illegal Chinese fentanyl that is killing tens of thousands of Americans every single year.”
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