The near-deal between the U.S. and China that fellapart six months ago is now being used as the benchmark todecide how much tariffs should be rolled back in the initial phaseof a broader trade agreement, people familiar with the talkssaid.

The two sides, which are locked in tough—perhapsfinal—negotiations on a phase-one pact, are discussing linking thesize of tariff rollbacks to the preliminary terms set in thatfailed May deal, according to the people, two of whom said theWhite House is still debating the precise percentage internally.The Chinese have demanded that all tariffs imposed after May beremoved immediately and then tariffs imposed before that be liftedgradually, according to one of the people.

The duties under discussion for a potential rollback include theinitial tariffs on some $250 billion in Chinese goods thatPresident Donald Trump imposed last year, according to two people.Some of his advisers had been pushing to keep those in placelonger-term, to ensure that China lives up to its end of thebargain, but now are open to partial relief in order to get thephase-one deal signed.