President Trump on Sunday predicted a “great future” for both China and the U.S. amid an escalating trade dispute, saying China would take down its trade barriers because it’s “the right thing to do.”

“President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal a deal will be made on Intellectual Property. Great future for both countries!” the president tweeted.

Mr. Trump last week proposed imposing $100 billion more in tariffs on Chinese products, after China and the U.S. had each released about $50 billion worth of proposed tariffs on imports from the other country amid an escalating standoff.

The U.S. list of affected Chinese products had included high-tech items in areas like aerospace and pharmaceuticals, while China had proposed new levies on U.S. products like soybeans and whiskey.

White House economic adviser Larry Kudlow on Sunday downplayed the prospect of a trade war, saying no U.S. actions have actually been taken yet.

“I don’t think there’s any trade war in sight,” Mr. Kudlow said on “Fox News Sunday.” “We’re not going to end up in a trade war.”