Trump says the U.S. hasn’t agreed to a full tariff rollback with China

President Donald Trump told reporters Friday that the U.S. hasn’t agreed to a rollback of all tariffs on China as negotiations between the world’s two biggest economies drag on.

Trump said while China wants a partial reversal of tariffs imposed in the trade war, he won’t fully eliminate them.

U.S. bonds rallied and stocks slipped after the president’s remarks diluted some of the optimism that had been increasing around the prospects for a truce.

On Thursday, signs were pointing toward a first-phase deal that would include a tariff rollback.

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China’s Ministry of Commerce spokesman Gao Feng said negotiators had discussions and “agreed to remove the additional tariffs in phases as progress is made on the agreement.”

White House economic adviser Larry Kudlow also confirmed Thursday the advance in talks.

“If there’s a phase one trade deal, there are going to be tariff agreements and concessions,” he told Bloomberg.

Trump made clear Friday that the U.S. hasn’t yet reached an agreement and emphasized that he wouldn’t eliminate all tariffs.