Trump optimistic on reaching deal with China, White House says

US President Donald Trump is optimistic about reaching a trade deal with China, White House press secretary Karoline Leavitt said on Friday, amid an escalating trade war between the two economic giants that has battered markets.

"The president has made it very clear he's open to a deal with China," Leavitt told a press briefing. "If China continues to retaliate, it's not good for China," she added.

Asked why Trump doesn't reach out to Beijing, Leavitt said: "I will leave it to our national security team to get these discussions underway. And as always, in the effort of transparency, we will provide updates, moving forward."

Beijing says it will simply ignore any further tariff escalations from the US, a reporter asked. Does Trump see this as China backing down?

"Look, the tariff rate on China remains where it was yesterday, at the 145% level. The president made it very clear when the United States is punched, he will punch back harder."

Phones 'ringing off the hook' to make deals

Leavitt said that over 75 countries have contacted the US administration to talk about tariffs in her opening statement: "More than 75 countries have now reached out to the Trump administration, eager to address the trade issues that have exploited America and hurt our workers in the process."

"The phones have been ringing off the hook to make deals. And these countries wisely heeded President Trump's warning not to retaliate, and as a result, they were rewarded with a 90-day pause and substantially lower reciprocal tariff rates during this period, so potential solutions can be achieved."

Leavitt was asked how the Trump administration planned to use the revenue collected for tariffs, and how it planned to boost US manufacturing, particularly given labor and components are not available in the country.

She didn't respond with specifics, and instead reiterated that Trump's general strategy was to use tariffs to bolster manufacturing and bring down the cost of living.

"So the president wants to restore wealth to America by shoring up these jobs here at home, which will result in good paying jobs and higher wages for the American public.

"And so Americans should trust in that process. He effectively implemented tariffs in his first term while driving down the cost of living in this country. And, that's what he's focused on doing again."

Later, asked what Trump was asking Americans to do to prepare for the "transition problems" that Trump has alluded to, Leavitt said: "I think the president is asking for Americans: trust in Trump, as I just said, trust in his economic agenda and formula. It's a proven formula that works."