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The United States and China are nearing a deal on tariffs and other trade provisions after negotiations between White House and Beijing officials in London earlier this week.
President Donald Trump announced Wednesday that a deal is done, although it remains subject to final approval by Trump and China President Xi Jinping.
Under the proposed deal, which would build upon a pact the two countries reached in May, the U.S. will levy a total of 55% tariffs on imports from China, Trump said. Meanwhile, China would maintain a 10% duty, which is in line with the rate the two countries in May agreed to charge during a 90-day pause.
Prior to the truce, the two countries had instituted several rounds of retaliatory tariffs, leading the U.S. to at one point impose tariffs of at least 145% on imports from China.
The proposed agreement also includes concessions by China related to the export of magnets and rare earths, according to Trump. In exchange, the U.S. will walk back threats to revoke visas for students from China, among other provisions.
U.S. Commerce Secretary Howard Lutnick stated Wednesday in London that the two countries had agreed to a framework of a deal, which China’s Ministry of Commerce confirmed in a statement Wednesday.
Representatives from both sides planned to brief their respective presidents and seek approval before implementation, according to Lutnick. Officials from both countries have not provided a timeline for when the proposed deal may be approved or implemented.