China trade deal will happen when time is right, says Donald Trump

World markets hovered near two-month lows on Tuesday

US President Donald Trump on Tuesday defended his trade war with China as tensions escalated and markets extended their losses, promising a deal with Chinese President Xi Jinping soon, even as fears escalated about a protracted battle.

In a string of tweets, Trump kept up his “America First” agenda in support of hefty tariffs and called on US companies to back him by shifting their businesses away from China. But he also softened his tone on soybeans and other agricultural products, appealing to Beijing to act. “When the time is right we will make a deal with China,” Trump said. “It