President Trump sought to tamp down a trade war with China on Wednesday, acknowledging that the 145 percent duty he slapped on Beijing is “very high” while appearing to be optimistic that he can strike a deal with Chinese President Xi Jinping to calm nerves in the U.S. markets.

“We’re dealing with a lot of countries right now and could be with China, but maybe we’ll make a special — you know, a deal — and we will see what it will be. Right now, it’s at 145 percent, that’s very high,” Trump said Wednesday, following remarks the day before when he suggested the China tariff could “come down substantially.”

Asked to respond to a Chinese government official who said the U.S. should stop “threatening and blackmailing China,” Trump insisted he had a good relationship with Xi.

“I have great relationships in China, with President Xi in particular, but China has been charging us massive tariffs for many years,” Trump said. “We’re going to get along great with China, I have no doubt about it.”

But Trump also gave no indication that the massive tariffs on Chinese goods would be going away anytime soon, something that is sure to keep the markets rattled.

A number of factors contributed to Trump’s decision to leave the door open to negotiating a lower rate with Beijing, including the market reaction and warnings from top business executives, sources who spoke to The Hill outlined.

The president met with CEOs of U.S. retailers, including Walmart,........

© The Hill