President Donald Trump told reporters late Tuesday that he is considering a 10% tariff on goods from China that could take effect as soon as Feb.1.

"We're talking about a tariff of 10% on China based on the fact that they're sending fentanyl to Mexico and Canada," the president said on Tuesday evening, per CNBC.

"Probably Feb. 1 is the date we're looking at," he added.

What To Know: The potential 10% tariff on Chinese imports is much lower than levies of up to 60% Trump had threatened while campaigning for office.

The potentially reduced levies come after Trump revealed on Friday that he had spoken with Chinese President Xi Jinping over the phone about trade, fentanyl, TikTok and other topics.

He shared some details and expressed optimism regarding the relationship with China on his social media platform, Truth Social.

"It is my expectation that we will solve many problems together, and starting immediately," Trump said.

Why It Matters: U.S.-listed Chinese stocks climbed Tuesday after Trump neither targeted China in his inauguration speech nor did he instantly impose tariffs on Day 1.

However, following Trump's comments on Tuesday evening, U.S.-listed Chinese stocks are dipping Wednesday with Alibaba Group Holdings, Ltd. (BABA  ) and Baidu, Inc. (BIDU  ) both down in early trading. Share of Chinese EV makers XPeng, Inc. (XPEV  ) and Li Auto, Inc. (LI  ) are also moving lower at the time of publication Wednesday.

Investors can also monitor effects of proposed tariffs on China through the KraneShares CSI China Internet ETF (KWEB  ) which consists of China-based companies focused on internet-related technology.