Trump signals China tariff cut, revokes Fed threat, mkts rally

A relief rally swept global equity markets Wednesday as comments by US President Donald Trump that he had "no intention" of firing the head of the Federal Reserve and his signals of possible tariff cuts for China reassured investors.

- Agencies

LONDON:

Trump's remarks, made at a White House news event Tuesday, appear to mark a rhetorical climbdown after weeks of tough posturing and tit-for-tat retaliation that sent tariffs on China beyond a staggering 145%.

"145% is very high and it won't be that high," Trump said in a question-and-answer session with reporters in the Oval Office. "It won't be anywhere near that high. It'll come down substantially. But it won't be zero."

China said Wednesday that it was willing to engage in trade talks with Washington. Asked about Trump's remarks, Beijing said that tariff and trade wars have "no winners", repeated previous comments.

"We do not wish to fight, nor are we afraid of fighting," said foreign ministry spokesman Guo Jiakun at a regular press conference, adding that China would "fight to the end", if necessary.