Donald Trump backs down in China trade war - 'We will make a very good deal'

Trump in Washington (Image: Getty)

US President Donald Trump appeared to back down in his long-running feud with China over trade as he told reporters he will make a "very good deal" with Beijing. Speaking as he hosted Italian PM Giorgia Meloni at the White House, Trump was also asked if Washington should be worried about allies looking to build closer ties with China, replying simply: "No."

Jeffrey Sonnenfeld of Yale University’s school of management said the former star of The Apprentice was "blinking" under pressure from Beijing.

Speaking to The Daily Express, he said: “Trump is trapped in a corner, slashing away like a wounded animal trying to make any kind of a deal.

"He doesn’t have the cards, and he knows that. Trump is once again blinking. One thing bullies can’t handle, is another bully. He will try to look for villains, he will find somebody else to blame for this.”

Chinese President Xi Jinping (Image: Getty)

It comes after the Republican unveiled blanket tariffs of at least 10% on allies and foes around the world on April 2. International stock markets immediately tumbled, and the President U-turned on the move only days later, pausing most of the tariffs for 90 days on April 9.

However, further tariffs on China were excluded from the pause and the two governments have been locked in a furious war of words since, with both Washington and Beijing imposing retaliatory levies.

US tariffs on Chinese goods currently stand at a whopping 145%, with the Trump administration claiming that they've been put in place to address long-standing, unfair trade practices against the US.

Trump also says the levies will help bring back domestic production to America. However, economists have warned the levies will hurt US businesses and fuel inflation.

But Beijing has been bullish, vowing to "fight to the end" in any trade war. It has slapped a broad 125% tariffs on most US goods entering its market.

Meanwhile, Both Trump and Meloni voiced optimism about the prospect of a deal being reached between the US and the EU before the 90-day pause elapses.

Following Trump's tariff climbdown, the bloc faces a 10% duty on exports to the US, but not the 20% the president had unveiled.

However, 25% tariffs on steel, aluminium and cars continue to be in place, as per The Guardian.

The bloc has paused its retaliatory 25% tariffs on US goods, which will come into effect if Washington and the EU can't agree a trade deal.

Speaking at the luncheon between the two leaders today, Trump said: "There'll be a trade deal, 100%.

They want to make one very, very much," he added. "We're going to make a trade deal -- I fully expect it, but it'll be a fair deal," as per ABC News.