President Trump vowed his administration will reach a "fair deal" with China on trade as he floats substantially reducing tariffs on Beijing.

U.S. President Donald Trump this week said his administration is talking with China to strike a tariff deal and that Chinese President Xi Jinping had called him, Time magazine reported, as Beijing has so far disputed the U.

Treasury Secretary Scott Bessent said President Trump will not reduce tariffs on China without an agreement by both governments to de-escalate their trade conflict.

The suit asks the court to declare the tariffs to be illegal and to block government agencies and its officers from enforcing them. The 12 states suing the administration include Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York, and Vermont.

The Trump administration would look at lowering tariffs on imported Chinese goods pending talks with Beijing, a source familiar with the matter said on Wednesday, adding that any action would not be made unilaterally.

President Trump’s apparent softening on tariffs has strengthened Chinese officials’ resolve that he will eventually cave if they wait him out.

China has denied President Trump's assertion that the two sides were involved in active negotiations over tariffs.