The US is suspending a tariff hike on 250 billion dollars of Chinese imports that was set to take effect on Tuesday as the world’s two biggest economies reached a ceasefire in their 15-month trade war.
The US president said: "This is just something that is very exciting and I'm very excited actually that we cover a lot more territory than agriculture but I'm very excited for the farmers because there's never been a deal of this magnitude for the American farmer."
The White House said the two sides made some progress on the thornier issues, including China’s lax protection of foreign intellectual property, and China agreed to buy 40 billion to 50 billion dollars of US farm products.
But more progress will have to be made on key differences in later negotiations, including US allegations that China forces foreign countries to hand over trade secrets in return for access to the Chinese market.
Trump said: "I don't blame China, I blame the people representing our country, now we have a deal that I think ultimately is going to be fantastic for China and fantastic for the United States."
"You’re very tough negotiators," Mr Trump said to the Chinese delegation.
Mr Trump has yet to change plans to impose tariffs on December 15 on an additional 160 billion dollars in Chinese products, a move that would extend the sanctions to just about everything China ships to the United States.
The December 15 tariffs would cover a wide range of consumer goods, including clothes, toys and smartphones and would likely be felt by American shoppers.
Still, nervous financial markets welcomed the prospect of reduced tensions between Washington and Beijing.
The two sides are deadlocked primarily over the Trump administration’s assertions that China steals technology and pressures foreign companies to hand over trade secrets as part of a drive to become the global leader in robotics, self-driving cars and other advanced technology.
Beijing has been reluctant to make the kind of substantive policy reforms that would satisfy the administration. Doing so would likely require scaling back China’s aspirations for technological supremacy, which it sees as crucial to its prosperity.
Earlier on Friday, China announced a timetable for carrying out a promise to allow full foreign ownership of some finance businesses, starting with futures traders on January 1, as Beijing tries to make its slowing economy more competitive and efficient.
Ownership limits will be ended for mutual fund companies on April 1 and for securities firms on December 1, the China Securities Regulatory Commission said. Until now, foreign investors have been limited to owning 51% of such businesses.