The Trump administration is weighing a dramatic tariff reduction during weekend talks with China to de-escalate tensions and temper the economic pain both countries are already starting to feel. People familiar with preparations for the talks,

The talks between China and the US are set to take place just two days after the UK became the first country to strike a tariffs deal with the Trump administration. The US has agreed to reduce import taxes on a set number of British cars and allow some steel and aluminium into the country tariff-free, as part of a new agreement.

The drop in U.S.-bound shipments was offset by a surge in Chinese goods to Southeast Asia, Africa, Europe and Latin America.