China and the United States have agreed on what has been called the first phase of a trade deal.
In a tweet, President Trump said the U.S. has agreed to a “very large Phase One trade deal with China” and said tariffs on imported Chinese products that were set to take effect this weekend would not be imposed.
He also said Beijing has agreed “to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more.”
The two countries will begin negotiations over the second phase of a trade deal right away, he said.
The tariffs will be phased out gradually. The office of U.S. Trade Representative Robert Lighthizer said the United States would cut in half tariffs that were imposed in September on $120 billion worth of Chinese imports, but will maintain 25% tariffs on another $250 billion in imports.
China too confirmed in a press conference in Beijing that a deal was reached. Both sides are yet to sign the deal.
Officials said the agreement would cover agricultural products, intellectual property protection, currency manipulation and forced technology transfers by U.S. companies doing business in China.
All are issues that Washington has been pressing China to address for years, with limited success.
China will increase purchases of high quality and competitive products from all countries, including the United States, officials said.