US 'doing well' on trade deal with China, says White House amid Trump's tariffs and Beijing's retaliatory moves

The remarks were made by the US president's spokeswoman Karoline Leavitt.

She told reporters "the ball is moving in the right direction".

Ms Leavitt said: "We're doing very well in respect to a potential trade deal with China".

The 'progress' has been made despite Beijing's retaliatory measures amid Trump's controversial tariffs.

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Chancellor Rachel Reeves is set to soon hold crunch talks with the United States in a bid to agree a trade deal in the wake of Donald Trump’s global campaign of tariffs.

Those close to talks have suggested Washington may press the UK to limit its dealings with China as part of trade talks.

She has warned the US against failing to engage with the second-biggest economy on Earth, explaining it would be the wrong move.

“China is the second-biggest economy in the world, and it would be, I think, very foolish, to not engage. That’s the approach of this Government,” she told The Telegraph.

She signalled she would back the fast fashion firm Shein launching an initial public offering (IPO) in the UK, saying the London Stock Exchange and the Financial Conduct Authority have “very strict standards” and “we do want to welcome new listings”.

Shein, which was founded in China but is now based in Singapore, has seen efforts to float face a variety of obstacles, including political pressure in the UK over alleged supply chain and labour abuses.

Trade negotiations between the UK and US are said to be "ongoing" and "productive" following a call between Sir Keir Starmer and US President Donald Trump.

The Prime Minister spoke of the need for "free trade" and his intention to "protect the national interest" during a phone call with Trump - as the pair attempted to iron out a trade agreement.

The call touched on a host of subjects according to Downing Street, with the leaders also discussing the ongoing conflict in Ukraine, nuclear details surrounding Iran, as well as the Houthis in Yemen.

Word of the pair's international discussions emerged from Downing Street on Friday afternoon, with both parties "agreed to stay in touch".

“The Prime Minister spoke to the President of the United States Donald Trump this afternoon," a Downing Street spokesperson said.

“The leaders began by discussing the ongoing and productive discussions between the UK and US on trade," Downing Street continued.

"The Prime Minister reiterated his commitment to free and open trade and the importance of protecting the national interest.

“The leaders also discussed the situation in Ukraine, Iran and recent action taken against the Houthis in Yemen.”

“They agreed to stay in touch,” Downing Street said.

In a huge win for China, the US said smartphones and computers would not be part of the 10% import taxes imposed on most countries, nor on China, which faces 145% tariffs.

It comes amid concerns that Trump's tariffs would cause the cost of electronics parts to skyrocket.

Also exempt are key components such as semiconductors and memory cards.

The announcement is set to benefit big tech companies such as Apple and Samsung.

Over 80% of Apple products are said to be made in China, including over 80% of iPads and half of Mac computers.

The US is a huge market for Apple products, so an import tax that would hit China heavily would have a major impact.

The aim of tariffs was to boost the US economy and the manufacturing sector in particular, but experts warned that it would take years to ramp up production to meet demand.

It is unclear if the tariff exemption is permanent.

The news comes after an adviser to the president suggested that it would take an "extraordinary deal" for the UK to improve on the 10% tariff Mr Trump announced earlier this month.

Sir Keir Starmer's government still hopes an economic deal with America can be reached to soften the blow of tariffs.

Most countries now face the same 10% rate as the UK on importing goods to America after the US president temporarily halted the sweeping "retaliatory" tariffs which had sent global markets into turmoil.