The US levied tariffs of 10 per cent on USD 200 billion of Chinese products in September, with the rate set to increase to 25 per cent by the end of the year. In response, Beijing said it would impose taxes on 5,207 US imports worth about USD 60 billion.
The two nations had already imposed tariffs on USD 50 billion of each other's goods before the September sanctions.
"China has been hurt over the last number of months. And they're having a hard time, and they'll be fine. And let's see what happens," Trump said at a White House event.
Trump said the two countries have a chance to make a fair deal.
"China has been hurting us and trade deals have been hurting us," he said, adding that his administration is changing all those trade deals.
"We are changing them. We changed with Mexico. We changed it with Canada, South Korea. We have a new deal," he said adding that the US is now negotiating with the European Union, which has absolutely hurting the United States.
Trump said the American economy is doing well and he has been receiving a congratulatory message from across the world.
"We are literally the hottest country in the world, economically, and it's a great thing to see. I think we have a long way to go. I really believe that" he said.
(With inputs from agencies.)