WASHINGTON (Reuters) - U.S. President Donald Trump said on Thursday he had received a “beautiful letter” from Chinese President Xi Jinping as negotiations on a trade deal between the two countries continue in Washington. “He just wrote me a beautiful letter. I’ve just received it and I’ll probably speak to him by phone,” Trump said. Later he quoted Xi as saying in the letter: “Let’s work together let’s see if we can get something done.” Trump said he believed it was possible to reach a deal this week, as negotiators prepare to meet again on Thursday in Washington to end a trade dispute between the world’s two largest economies. The U.S. Trade Representative’s office announced that tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent at 12:01 a.m. (0401) GMT on Friday, right in the middle of two days of meetings with a Chinese delegation. Trump has accused China of reneging on commitments it had made so far in the talks. “We’re getting very close to a deal then they started to renegotiate the deal. We can’t have that. We can’t have that,” he said.<doc-sep>Donald Trump said he believed it was possible to reach a deal with China this week US President Donald Trump said on Thursday he had received a "beautiful letter" from Chinese President Xi Jinping as negotiations on a trade deal between the two countries continue in Washington. "He just wrote me a beautiful letter. I've just received it and I'll probably speak to him by phone," Trump said. Later he quoted Xi as saying in the letter: "Let's work together let's see if we can get something done." Trump said he believed it was possible to reach a deal this week, as negotiators prepare to meet again on Thursday in Washington to end a trade dispute between the world's two largest economies. The U.S. Trade Representative's office announced that tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent at 12:01 a.m. (0401) GMT on Friday, right in the middle of two days of meetings with a Chinese delegation. Trump has accused China of reneging on commitments it had made so far in the talks. "We're getting very close to a deal then they started to renegotiate the deal. We can't have that. We can't have that," he said.<doc-sep>President Donald Trump on Thursday said Chinese President Xi Jinping wrote him a "beautiful letter" and that they would probably speak soon. Trump's comments came shortly before a delegation is due to arrive in Washington for the next round of trade talks. Tariffs on $200 billion of Chinese goods will rise to 25% from the current 10% Friday in the absence of a deal. Trump said "we'll see" about striking a deal "but our alternative is an excellent one." The Dow Jones Industrial Average DJIA, +0.03% fell as much as 400 points Thursday amid continuing trade tensions.<doc-sep>President Donald Trump said Thursday he’d gotten a “beautiful letter” from Chinese President Xi Jinping, just hours before U.S. and Chinese officials were set to resume trade talks in Washington ahead of a deadline for tariffs. XI LETTER AND TARIFF THREAT Trump was asked about the prospects for a trade deal during an event on surprise medical billing at the White House, and replied “we’ll see.” He said an agreement with China was still possible this week but called tariffs an excellent alternative. “I happen to think that tariffs for our country are very valuable,” said Trump. Tariffs on $200 billion of Chinese goods will rise to 25% from the current 10% Friday in the absence of an agreement. U.S. stocks SPX, +0.19% DJIA, +0.03% bounced off their lows after Trump's comments on the Xi letter and China talks. See:Here are this week’s biggest stock-market losers as Trump's trade war on China continues Trump said at the event that his administration was working with Congress on a package to end surprise medical billing and said, “We have bipartisan support, which is rather shocking.” Now read:President Trump is calling for an end to surprise medical bills — why that’s harder than it sounds. CHANGE OF TONE ON OBSTRUCTION Trump also said Thursday he’d leave it up to Attorney General William Barr as to whether the special counsel, Robert Mueller, would testify before Congress about his report, which Trump has previously said found no collusion and no obstruction of justice. The president shifted his tone on his characterization of the report in remarks Thursday, saying it found “no collusion and essentially no obstruction.” Mueller’s report said that contacts by Trump associates didn’t amount to collusion. The special counsel also wrote he couldn’t conclude that Trump didn’t commit obstruction of justice. Barr then determined Trump had not committed a crime. Trump also told reporters he was “very surprised” that his son Don Jr. was sent a subpoena by the Senate Intelligence Committee, headed by North Carolina Republican Richard Burr. Burr, said Trump, previously “said we found no collusion.” Trump said Don Jr. had testified for “20 hours or something” and called him a “very good person.” Now read:House panel votes to hold Barr in contempt; Nadler cites ‘constitutional crisis’ IRAN AND KERRY Trump also ramped up criticism of former Secretary of State John Kerry, saying he “should be prosecuted” for alleged violations of the Logan Act by holding conversations with Iranian officials. Trump had also in April criticized Kerry for talking with Iran. A Kerry spokesman told Politico that “everything President Trump said today is simply wrong, end of story.” Amid escalating tensions between the U.S. and Iran, Trump said he wanted the country to “call me.” Trump has pulled the U.S. out of the Iran nuclear deal and this week announced sanctions on Iranian steel and other industries. Sign up for Trump Today and other MarketWatch newsletters.<doc-sep>
President Donald Trump on Thursday said a trade deal with China is still "possible" this week, saying that Chinese President Xi Jinping wrote him a "beautiful letter" calling on both sides to work together. Trump's reference to Xi's correspondence was similar to remarks made about improved relations with North Korean leader Kim Jong Un last year. The US increased tariffs on $200 billion worth of Chinese products at 12:01 a.m. on Friday. The Trump administration has said the increase is in response to China backtracking on previous trade agreements, which China denies. Visit the Business Insider homepage for more stories. President Donald Trump said on Thursday that a trade deal with China is still "possible" this week, explaining that Chinese President Xi Jinping wrote him a "beautiful letter" calling on both sides to work together. "He just wrote me a beautiful letter," Trump told reporters on Thursday. "Let's work together. Let's see if we can get something done." Delegations from the world's two largest economies are meeting in Washington to hash out a still unfinished trade deal. Chinese Vice Premier Liu He arrived in Washington this week for the 11th round of talks as both sides are still locked in an intensifying trade war. The US increased tariffs from 10% to 25% on $200 billion worth of Chinese products just after midnight on Friday. The tariffs target chemicals, building materials, consumer electronics, and other goods. Following the tariff increase, the Associated Press reported that China said it would take "necessary countermeasures" in response; details were not provided. Both sides failed to reach a deal on Thursday to prevent the move but agreed to continue talks on Friday. "We were getting very close to a deal, then they started to renegotiate the deal," Trump told reporters on Thursday. "So I have no idea what's going to happen." The Trump administration has said the increase stems from China backtracking on previous trade agreements. A spokesperson for the Chinese Ministry of Commerce denied the United States' claims and said China "keeps its promises." Sources told Reuters that a previous draft of the deal showed China had pushed back on several key US complaints, including intellectual property theft, forced technology transfers, and currency manipulation. "And I like the president a lot," Trump said of Xi. "He's a friend of mine. But I'm representing the USA, and he's representing China. And we're not going to be taken advantage of anymore." Chinese state media on Thursday published a scathing editorial, which said China was "well-prepared" for US trade escalation. "A variety of plans are in place, such as countermeasures for any tariff rise, and favorable policies to minimize losses for Chinese enterprises," Communist Party tabloid Global Times said in an editorial. "Mentally and materially, China is much better prepared than its US counterpart."