WASHINGTON () President Donald Trump said Tuesday that tariffs on China could drop “substantially” as his administration negotiates trade deals with dozens of countries.

The White House said the administration is working to de-escalate its trade war with China, and Trump expressed optimism that a deal could be made.

As it stands, Chinese imports to the U.S. face a steep 145% tariff.

During a speech Tuesday, Treasury Secretary Scott Bessent described the trade war as “unsustainable” but said no formal talks have been scheduled.

The Trump administration said the United States has received trade proposals from 18 countries and has negotiated with Japan, India, Mexico and South Korea. This week, the administration plans to meet with more than three dozen countries.

Trump has not signaled an intention to pull back the universal 10% tariff.

Earlier this week, China warned countries against reaching trade deals with the U.S. that could potentially negatively impact China.

Trump urges Fed to lower interest rates

Trump has said he wants to see interest rates lowered, putting pressure on the Federal Reserve, though he has walked back his recent calls for Fed Chair Jerome Powell’s ouster.

Trump had called Powell a major loser, accusing him of lowering interest rates last year to try to help former President Joe Biden.

In the past, Powell has said he cannot legally be fired and would refuse to leave until the end of his term next year.