The world's two biggest economies are locked in an escalating tit-for-tat trade battle triggered by Trump's new levies on Chinese goods, which have reached 145 percent on many products.

China has denied that it is conducting trade negotiations with the United States, but Trump said he expects the two countries to reach an agreement in the next few weeks, TIME reported.

"There's a number at which they will feel comfortable," Trump told the magazine during an interview that took place on Tuesday. "But you can't let them make a trillion dollars on us."

The tariff blitz -- which Trump says is retaliation for unfair trade practices, as well as a bid to restore US manufacturing prowess -- has rattled markets and raised fears of a global recession.