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Report: US, China Close to Reaching Trade Deal

American flags are displayed together with Chinese flags on top of a trishaw in Beijing.

The United States and China are close to reaching a trade deal that could see both sides ending the tit-for-tat war of tariffs that has been escalating since last year, the Wall Street Journal reported Sunday.

News of the deal buoyed markets in Asia early Monday as the Journal reported that U.S. President Donald Trump and Chinese President Xi Jinping could meet to sign a deal as early as the end of March, after Xi ends a tour of Europe.

The report said China has agreed to lower tariffs and ease restrictions on American goods, including farm, auto and chemical products. In return, the U.S. would lift the tariffs imposed on Chinese goods last year.

China has also agreed to Trump's demand that Beijing lower the trade gap between the two nations. It has agreed to buy more American products, including a possible multibillion-dollar purchase of natural gas.

The report quoted people on both sides, who cautioned that not all hurdles have been crossed.