"I think we'll make a deal with China, and I think it will be a very fair deal for everybody", Trump said Friday at the White House before leaving for political rallies in West Virginia and Indiana.
Trump said that if a deal is not made with China, he could impose tariffs on another $267 billion in Chinese imports into the United States, adding that China's economy had "been hit very hard" by previous US tariffs.
Both sides reported that they had constructive discussions on North Korea and trade, with Chinese state media saying that Trump supported "frequent, direct communication" between the presidents and "joint efforts to prepare for" the planned meeting on the sidelines of the Group of 20 summit, which is scheduled to take place from November 30 to December 1.
Bloomberg, citing people familiar with the matter, later reported that Trump wants to reach a trade agreement with China at the G20 meeting and that after the call with Xi, he had asked officials to begin drafting possible terms.
The comment comes days after he warned he would impose tariffs on all China's shipments to the United States before saying he thought he could "make a great deal with China" but it was not yet ready.
Xi was quoted as saying after the call with Trump that they had hoped to expand trade cooperation.
At the same time he noticed that in case all goes well with trade talks with Beijing, the United States may lift tariffs against China.
The comments came days after Trump warned he would impose tariffs on all China's shipments to the USA before saying he thought he could "make a great deal with China" but it was not yet ready.More news: Pakistani cleric, called godfather of Taliban, assassinated in Rawalpindi
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The moves also follow media reports that pointed to progress on the US-China trade dispute.
"Both leaders attach great importance to China-US ties and economic ties", Lu said.
"The two countries" trade teams should strengthen contact and conduct consultations on issues of concern to both sides, and promote a plan that both can accept to reach a consensus on the China-U.S. trade issue, ' Xi said.
In May, after his last phone call with Xi, Trump agreed to ease up on sanctions imposed on Chinese telecom equipment maker ZTE Corp., saying they would cost too many Chinese jobs.
"Frankly, the principal culprit is China", he said.
His administration has demanded that Beijing make sweeping changes to its policies on intellectual property protections, technology transfers, industrial subsidies and domestic market access, along with steps to reduce a $375 billion US goods trade deficit with China.
"Look, there's no massive movement to deal with trade", Kudlow said. He said China wanted to make a deal, adding, "They are not doing well".
Trump's posture toward China has been closely watched by investors, who are looking for the possibility of tensions cooling.