New reports indicate Donald Trump is considering slashing tariffs on Chinese goods by more than half.

No announcements have been made yet- but tariffs could reportedly come down to between roughly 50 percent and 65 percent, according to one senior White House official. 

Asia Business Correspondent Peter Lewis says China has signalled it's open to trade talks - as officials believe this is the US blinking first in the trade dispute.

"They see it as vindication of President Xi's strategy - which is to hang tough and not to be bullied and not to negotiate under duress."

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