USA and China have agreed on a "framework" regarding tariffs, said representatives of the two countries in London, where the parties have negotiated with each other. Donald Trump confirms on Wednesday and writes that US tariffs on goods from China will be 55 percent while China's tariffs against the US are at 10 percent, according to the agreement.
He adds that the agreement formally needs to be approved by both China's leader Xi Jinping and himself to take effect.
According to Trump, the agreement means that Chinese exports of magnets and rare earth metals will increase. In addition, the agreement opens up for Chinese students at universities in the US, Trump says.
Earlier on Wednesday, China's Vice Premier He Lifeng told state-owned Chinese TV that both parties will continue to negotiate to reduce misunderstandings and increase cooperation, reported Bloomberg.
He is also said to have said that China is not afraid of a trade war but does not want one either.
Leaders to approve "framework"
The delegations of the two countries will now take the proposal back to their respective leaders, said China's Vice Minister of Commerce Li Chenggang.
During the night, the first signs emerged that China has relaxed its disputed restrictions on the export of rare earth metals to the US. A leading manufacturer, JL Mag Rare Earth, received several previously blocked export permits, reported news agency Bloomberg, citing the company.
The Hong Kong-listed stock surged upward after the announcement.
The details of the agreed framework have not been made public. The American negotiators say they "definitely" expect the issue of the export of important metals and rare magnets, which China has blocked, to be resolved as a result of this.
Down trend on Wall Street
The market reaction to the agreement has so far been cautious, as there is a lack of concrete details on what the US and China have actually agreed on.
In the futures market ahead of Wednesday's trading on Wall Street, it points to small declines – after three consecutive days of gains. Leading European exchanges, including the Stockholm Stock Exchange, are going slightly upward.
