China is proposing to restore the 2020 "Phase 1" trade deal with the U.S. as a response to tariffs imposed by former President Donald Trump, according to a Wall Street Journal report.

Axar.az, citing Economic Times, reports that the plan includes commitments to avoid devaluing the yuan, increase investments in the U.S., and reduce fentanyl precursor exports.

Trump recently imposed new tariffs: 25% on Mexican and most Canadian imports and 10% on Chinese goods, citing fentanyl and illegal immigration concerns. While China condemned the tariffs, it left the door open for negotiations, unlike Canada, which retaliated with 25% tariffs on $105 billion worth of U.S. goods.

The original Phase 1 trade deal, signed in 2020, aimed to end a two-year tariff war by requiring China to boost U.S. imports by $200 billion, but those targets were unmet due to the pandemic. Meanwhile, China is treating TikTok's ownership as a commercial issue, allowing ByteDance to negotiate with U.S. buyers.

Neither the U.S. Department of Commerce nor China’s Commerce Ministry has commented on the report.