US President Donald Trump suggested on Wednesday that a new trade deal with China was “possible,” despite escalating tariff disputes.

Speaking to reporters, Trump said the US had already secured a “great trade deal” with China in 2020 and indicated that further agreements could be reached.

China’s foreign ministry responded on Thursday, calling for both nations to manage trade tensions with “mutual respect.” Ministry spokesman Guo Jiakun warned that “trade and tariff wars have no winners and only serve to damage the interests of people all over the world.”

Trump has ramped up his tariff policies since the start of his second term, imposing a 10% duty on all Chinese imports in early February. His administration also considers 25% tariffs on imported cars, pharmaceuticals, and semiconductors. On Wednesday, he floated the possibility of a similar tariff on lumber.

Beijing has retaliated with 15% tariffs on US coal and liquefied natural gas and 10% on oil and machinery. The country recorded a $295.4 billion trade surplus with the US in 2024.

Meanwhile, Japan is seeking exemptions from US steel and aluminum tariffs set to take effect on March 12. The EU has also warned of retaliation, with trade chief Maros Sefcovic insisting the bloc will respond “firmly and swiftly” if targeted.