President Donald Trump said on Friday that the U.S. has canceled plans to impose new tariffs on $160 billion worth of Chinese imports.

This comes as part of a modest interim agreement that de-escalates a 17-month trade war between the world's two biggest economies.

In return, Trump said, the Chinese have agreed to "massive'' but unspecified purchases of American farm and manufactured products.

The United States is also reducing existing import taxes on about $112 billion in Chinese goods from 15% to 7.5%

The president's comments came during his Oval Office meeting with Paraguayan President Mario Abdo Benitez.

The ``Phase 1'' deal announced Friday leaves unresolved some of the thorniest issues.

But Trump said work on a follow-up would begin ``immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!''

President Trump also congratulated UK Prime minister Boris Johnson's election victory which will increase trade between the two countries.