President Trump has indicated that a new trade agreement with China is on the verge of being signed off shortly.

After a period of turbulence in the markets and trade uncertainties, the United States and China seem to be moving towards a trade ceasefire. The trade dispute between the top two global economies has resulted in ongoing tariff exchanges, which have created market instability and negatively impacted worldwide economic growth.

While the initial phase of the forthcoming trade deal may not signify an end to the trade tensions, it will involve the reduction of major tariffs from both sides. As part of this initial phase, the U.S. is set to lower some of the tariffs imposed on Chinese goods in return for increased Chinese purchases of American agricultural products. The agreement is slated to be signed in early January, according to U.S. Treasury Secretary Steve Mnuchin.

Chinese President Xi Jinping has expressed support for the first phase of the upcoming deal as well. In his statements, Xi noted that “Both the U.S. and Chinese markets, as well as the global economy, have responded positively to this development. The U.S. is committed to maintaining close communication with China to ensure the swift signing and implementation of the agreement.” Xi also signaled his readiness to engage in discussions with President Trump regarding the bilateral relationship, emphasizing the importance of “coordination, cooperation, and stability.”