China and the United States have reached agreement on a provisional trade deal. President Donald Trump confirmed this on Twitter, after earlier mention had been made in Beijing of an agreement in the ongoing trade dispute between the economic superpowers.

According to Trump, new US import duties on more than $ 160 billion worth of Chinese goods that would take effect on Sunday are suspended. According to him, China has promised to buy American agricultural goods, energy and other products on a large scale. He spoke of a “fantastic deal” for everyone.

This is a so-called ‘phase 1 trade deal’, which must become the prelude to a broader trade agreement. Trump indicated that negotiations on a “phase 2 deal” would start immediately. According to him, some existing import duties on Chinese products will be reduced. Other rates are still valid.

The Chinese Deputy Minister of Commerce, Wang Shouwen, stated at a press conference in Beijing that the US has promised to scrap tariffs on Chinese goods. China is now going to increase its purchases of American energy, agricultural products, pharmaceutical goods and financial services. Beijing, in turn, will also refrain from levies on American products that would take effect on Sunday. In addition, China will do more to protect the intellectual property of companies and to combat counterfeit goods.

Negotiations on where and when the two countries will formally sign the deal are still under negotiation, said Chinese Deputy Minister of Finance Liao Min.