What happens if US, China don't settle on trade deal after 90 days? Donald Trump says ‘they will go…’

US President Donald Trump on Monday provided some clarity on what would happen if America and China do not settle on a trade deal after the stipulated 90 days.

In a press briefing at the White House, the US President was asked if the tariffs would go back to 145 per cent should US and China fail to reach a deal.

To this, Trump replied, “No”.

However, he warned that the tariffs would indeed go up.

“But they will go up substantially higher [than 30%].”

Trump further said that he thinks Washington and Beijing will have a deal.

He repeatedly said that China wants to make a deal “very badly” and to avoid the worst phase of US-China trade war.

“I think they want the deal very badly.”

The US President added that he thought China will follow through with removing non-monetary barriers, adding “I think they want the deal very badly.”

Donald Trump may speak to Xi Jinping soon

US President Donald Trump dubbed the trade deal with China as a "total reset" as he said a call with counterpart Xi Jinping could soon follow.

“Yesterday we achieved a total reset with China after productive talks in Geneva,” Trump said. “I'll speak to President Xi, maybe at the end of the week.”

US-China trade deal

The United States and China announced on Monday an agreement to drastically reduce their tariffs on each other.

US Treasury Secretary Scott Bessent described weekend discussions with Chinese Vice Premier He Lifeng and international trade representative Li Chenggang as "productive" and "robust" with both sides anticipated to meet again soon.

"Both sides showed a great respect," Bessent told reporters.

The Trump administration said it would reduce the 145 per cent duties it had imposed on imports from China to 30 per cent, while China said it would cut its 125 per cent tariffs on US goods to 10 per cent. Some of the US tariffs — 24 percentage points — will be delayed for 90 days, while the rest of have been removed.

“They’ve agreed to open China, fully open China. And I think it’s going to be fantastic for China. I think it’s going to be fantastic for us, and I think it’s going to be great for unification and peace,” Trump said.

The announcement saw Wall Street power ahead after solid gains in Asia and Europe, with the S&P 500 jumping about 2.5% to trade above President Donald Trump’s April 2 “Liberation Day” announcements.