President Donald Trump said Tuesday, Dec. 31, that a phase one trade deal between the United States and China will be official on Jan. 15 at a White House ceremony.

“I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15. The ceremony will take place at the White House. High level representatives of China will be present. At a later date I will be going to Beijing where talks will begin on Phase Two!” he tweeted.

President Trump earlier last month announced that his administration and China had reached the partial trade deal in which China agreed to increase purchases of American products and services by at least $200 billion over the next two years. The purchases will include manufactured goods, agricultural goods, energy, and services.

“I think in agriculture they will hit $50 billion,” President Trump told reporters in the Oval Office. “It’s a phenomenal deal. And I say, affectionately, the farmers are going to have to go out and buy much larger tractors, because it means a lot of business, a tremendous amount of business.”

The deal also contains commitments to protect companies against intellectual property theft and technology transfer. 

In return, the United States has agreed to cut by half the tariff rate it imposed on Sept. 1 on a $120 billion list of Chinese goods to 7.5%. U.S. tariffs of 25% on $250 billion worth of Chinese goods will be kept for a second phase of the deal next year.

An easing of trade tensions between the two nations would be welcome news to businesses and investors. Last month, the president and congressional Democrats also struck a deal to pass the United States Canada Mexico Agreement with strong bipartisan support. 

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