WASHINGTON (Reuters) - U.S. President Donald Trump is optimistic about reaching a trade deal with China, White House press secretary Karoline Leavitt said on Friday, amid an escalating trade war between the two economic giants that has battered markets.

"The president has made it very clear he's open to a deal with China," Leavitt told a press briefing. "If China continues to retaliate, it's not good for China," she added.