China is considering exempting certain imports from the U.S. from the 125 percent tariffs it imposed earlier this month, as retaliatory measures between the world’s two largest economies continue,

President Trump said 145% tariffs on Chinese imports will "come down substantially" as his administration expressed optimism about a trade deal.

China exempted some U.S. imports from its steep tariffs in a sign on Friday that the trade war between the two countries could be easing, though China quickly knocked down U.S. President Donald Trump's assertion that negotiations were underway.