President Trump makes fresh gaffes amid China-US trade war

US President Donald Trump has been caught out in a lie once again, this time over claims about Apple.

More: 5 ways Trump's iPhone tariff is dumb

The tech giant this week shocked the globe after experiencing its worst day of trading in years, with stocks tumbling and billions wiped out thanks largely to dropping iPhone sales in China.

But a defiant Trump denied there was a problem, telling reporters Apple stocks were "up hundreds of per cent" since he became president.

"Apple was at a number that was incredible and they're going to be fine. Apple is a great company," CNBC reported the president as saying.

He also said he wasn't worried about Apple's effect on the US economy, but took the opportunity to urge US companies to return their manufacturing to home soil amid the ongoing US-China trade war.

"I told [Apple CEO] Tim Cook, who's a friend of mine, who I like a lot, make your product in the United States," Trump said.

"China is the biggest beneficiary of Apple, more than us. Because they build their product mostly in China."

But according to the CNBC network, both claims were false.

Apple's stock has actually increased by just 18.5 per cent during the Trump presidency, while Cook himself previously told reporters many Apple component were made in the US, and only assembled in China.

Meanwhile, economists predict the US and China now have a far greater chance of resolving their differences and ending the trade war as a result of Apple's dismal result, which is considered to be proof the US is starting to feel the pinch.

Leading economists Stephen Stanly and Michael Gapen both told CNBC the Apple situation showed US companies were hurting as a direct result of the simmering tensions between both nations.

But yesterday, Trump said he believed Washington and Beijing would strike a deal to end the months-long dispute that has roiled global financial markets.

"I think we will make a deal with China," Trump said at the White House, noting talks were underway with China "at the highest levels."

A fresh round of talks between the two nations will take place from Monday, with a US delegation led by deputy US trade representative Jeffrey Gerrish set to travel to Beijing for face-to-face discussions.

"We have a massive trade negotiation going on with China. President Xi is very much involved, so am I. We're dealing at the highest levels and we're doing very well," Trump said.

Trump and Chinese president Xi Jinping have already agreed to a three-month cease fire after imposing steep tariffs on hundreds of billions of dollars in two-way trade, which has raised fears of slowing economic growth and added to investor jitters worldwide.

— with wires