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.

WASHINGTON (Reuters) - U.S. President Donald Trump said on Thursday he expects there to be substantive negotiations between the United States and China on trade this weekend and said tariffs couldn't get higher than 145 percent.

China has granted tariff exemptions on select pharmaceuticals, microchips and aircraft engines from its 125% retaliatory tariffs on U.S. goods imposed after President Donald Trump unleashed his tariffs in April.