Trade talks with China not yet collapsed, says Trump

U.S. President Donald Trump on Tuesday said trade talks with China had not collapsed, characterizing the trade war between the world's two largest economies as "a little squabble."

He made the remarks to reporters at the White House as Beijing and Washington ratchet up tensions with tit-for-tat tariffs on billions of dollars of imports. Trump indicated negotiators from the two countries were still talking, saying they were having a good dialogue. China's Foreign Ministry spokesman said on Tuesday the two sides had agreed to continue pursuing relevant discussions.

The United States and China have been engaged in talks for months to reduce trade tensions between the world's two largest economies, but in recent weeks, talks have stalled, with both countries blaming each other for the breakdown. (Reporting by Alexandra Alper; Writing by Makini Brice; Editing by Doina Chiacu and Susan Thomas)