U.S. President Donald Trump announced last week that a deal restoring a fragile trade truce with China has been completed, following two days of high-level talks in London. By ILM.

The agreement sets a framework for easing bilateral tariffs, removes Chinese export restrictions on rare earth minerals and permits continued access for Chinese students to U.S. universities.

The deal maintains a fixed 55% tariff on Chinese imports, according to U.S. Commerce Secretary Howard Lutnick, and comes after a prior agreement reached in Geneva had faltered over export restrictions. U.S. exports to China will face a 10% tariff.

A White House official explained that the 55% tariff comprises three components: a baseline 10% “reciprocal” tariff applied to most U.S. trading partners; an additional 20% on all Chinese imports, tied to punitive measures targeting China, Mexico and Canada over alleged links to the flow of fentanyl into the U.S.; and an existing 25% tariff on Chinese goods dating back to Trump’s first term in office.

The deal still needs to be approved by Presidents Trump and Xi, but the U.S. administration has confirmed that its 55% tariff on China is fixed.