US President Donald Trump said on Tuesday that he had no intention of firing Jerome Powell, despiterecent outbursts against thethe chair of the US Federal Reserve. He alsosignalled a "substantial" lowering of tariffs on China bringing relief to global markets spooked by his aggressive trade policies.

US President Donald Trumpsaid Tuesday he had no intention of firing the chair of the USFederal Reserveand signalled a "substantial" lowering oftariffsonChinabringing relief to global markets spooked by his aggressivetradepolicies.

Trump's recent outbursts against Fed bossJerome Powellhad fanned concern that he would oust him, sending jitters through markets.

The president had criticised Powell for warning that theWhite House's sweeping tariffs policy would likely reigniteinflation.

"I have no intention of firing him," Trump said Tuesday. "I would like to see him be a little more active in terms of his idea to lowerinterest ratesit's a perfect time to lower interest rates.

"If he doesn't, is it the end? No."

Since Trump's return to the White House in January, the United States has imposed additional tariffs of 145 percent on many products from China.

These include duties initially imposed over China's alleged role in thefentanylsupply chain and later over practices Washington deemed unfair.

Beijinghas responded with sweeping counter-tariffs of 125 percent on US goods.

But Trump acknowledged Tuesday that 145 percent was a "very high" level, and that this will "come down substantially".

Read moreIMF slashes global growth forecast amid Trump tariff turmoil

"They will not be anywhere near that number," but "it won't be zero", the president said.

"Ultimately, they have to make a deal because otherwise, they're not going to be able to deal in the United States."

Chinese PresidentXi Jinpingwarned Wednesday that tariff and trade wars "undermine the legitimate rights and interests of all countries, hurt the multilateral trading system, and impact the world economic order".

However, foreign ministry spokesman Guo Jiakun later in the day said that "the door for talks is wide open".

Trump's comments came after Treasury Secretary Scott Bessent told a closed-door event on Tuesday that the tariffs amounted to a reciprocal trade embargo.

But he said he expected a de-escalation in the near future, according to a person who was in the room.

Such a development should bring markets some relief, he added at the JPMorgan Chase-hosted event, which was not open to media.

Wall Street's major indexes jumped after a report on Bessent's comments, which came on the sidelines of the International Monetary Fund andWorld Bank's Spring Meetings.Asian marketsrallied across the board on Wednesday.

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'Doing very well'

Bessent said there was much to be done at the end of the day with Beijing but he noted the need for fair trade and said China needed to rebalance its economy.

The Treasury chief stressed that the goal is not to decouple with China, noting that container bookings between both countries have slumped recently as trade tensions heated up.

Also on Tuesday, White House Press Secretary Karoline Leavitt told reporters that Washington is "doing very well in respect to a potential trade deal with China".

"The president and the administration are setting the stage for a deal," she added, noting that "the ball is moving in the right direction".

She said the feeling was that parties involved want to see a trade deal happen, though China has as of yet not confirmed that it is negotiating with the United States.

As globalfinanceministers and central bankers converge in Washington this week, all eyes are on the progress of trade talks on the sidelines of the spring meetings as countries grapple with Trump's new and wide-ranging tariffs.

China's foreign minister Wang Yi, meanwhile, urged Tuesday in phone calls with his British and Austrian counterparts for theUKandEuropean Unionto work with Beijing on safeguarding international trade.

Japanwas reportedly eyeing a second visit to Washington by tariffs envoy Ryosei Akazawa next week, with local media saying Tokyo is mulling concessions to assuage Trump.

Japan's Sumitomo Rubber, which recently bought the Dunlop brand, said it would from May hike tire prices for cars and small trucks in the United States andCanadaby up to 25 percent.

(FRANCE 24 and AFP)

Originally published on France24