(Reuters) - Ray Dalio, founder of the world's largest hedge fund, called for a U.S. deal with the Chinese on tariffs and said that the next goal for U.S. President Donald Trump's administration should be to cut the country's deficit to 3% of GDP.

"Trump's decision to step back from a worse way and negotiate how to deal with these imbalances is a much better way," Dalio, who helms hedge fund Bridgewater Associates, said in a post on X, while referring to Trump's tariff decision earlier in the day.

In a stunning reversal, Trump earlier on Wednesday said he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China.

(Reporting by Kanjyik Ghosh)