On Friday, U.S. President Donald Trump said the remaining 25% tariffs on approximately $250 billion worth of China Exports will remain in place and will be negotiable in a phase two deal.

He also said that at Beijing's request, the "phase two" talks will begin immediately rather than waiting until after the 2020 election.

The two sides confirmed the trade deal Friday morning. The U.S. says it will suspend new tariffs set to take effect Sunday on nearly $160 billion worth of Chinese imports.

Washington will maintain an existing 25% tariff on around $250 billion in Chinese goods, but the Office of the U.S. Trade Representative said it will slash in half tariffs on a separate batch of Chinese products worth $120 billion. They will be taxed at 7.5% instead of 15%.

It's all part of an interim agreement that de-escalates the lengthy trade war between the world's two biggest economies.

Friday's announcement was a long time coming. Trump first announced a Phase One deal on Oct. 11, but negotiations on a final version continued for another two months.