President Donald Trump on Wednesday indicated that a fresh trade agreement with China is "possible," despite escalating tariff tensions targeting several key US trading partners.

In 2020, Trump claimed the US had secured "a great trade deal with China," and expressed optimism about reaching a new one. However, his administration has ramped up pressure through sweeping tariffs affecting allies and rivals, including China, Canada, Mexico, and the European Union.

Earlier this month, the US imposed a 10% tariff on all Chinese imports, with Trump also threatening 25% duties on automobiles, pharmaceuticals, and semiconductors. While initially announcing 25% tariffs on Canadian and Mexican goods, Trump reversed course hours before enforcement, granting a temporary reprieve until March 1.

Additionally, new tariffs of 25% on steel and aluminum are set to take effect on March 12, underscoring the administration’s aggressive stance on trade.