China and the United States said on Tuesday that they have reached agreements to get trade back on track between those countries. The limited agreement would lift some U.S. tariffs.
The Chinese and American negotiating teams have reached a preliminary agreement on a trade framework after two days of consultations in London. The deal still needs to be approved by the government leaders.
It concerns a draft for which a telephone conversation between Presidents Donald Trump and Xi Jinping forms the basis. According to U.S. Commerce Secretary Howard Lutnick, it should lead to the lifting of restrictions on the export of rare earth metals and magnets. Lutnick declined to say which tariffs would be lifted.
Chinese Commerce Minister Li Chenggang hopes that the outcome will strengthen confidence between the countries. But according to Reuters, there are still significant differences of opinion on tariffs and the Chinese export model. The positions of both parties have not changed after the negotiations.
Trump unleashed a trade war this year by imposing duties on many countries. Including China. The U.S. and China have until August 10 to negotiate a broader agreement to improve trade. On that date, tariffs will rise sharply: from 30 to 145 percent on the U.S. side and from 10 to 125 percent on the Chinese side.