"We're having very good talks with China," Donald Trump said

President Donald Trump said Thursday the planned trade talks with China set for September will go ahead, and the sides continue to negotiate by phone.

"The meeting is still on, as I understand it," Trump told reporters, less than a week after he said the next round in Washington might be canceled.

"We're having very good talks with China," he said, but warned that if Beijing retaliates against the US, "we have the ultimate form of retaliation."