President Trump announced this Wednesday that the United States has reached an agreement with the European Union to advance together towards "zero tariffs," putting an end to the trade war. The announcement came after his meeting in Washington with the president of the European Commission, Jean-Claude Juncker.

Trump said that the two parties committed to work toward "zero tariffs, zero non-tariff barriers, and zero subsidies for non-automotive industrial goods."

Juncker added, “We also agreed to work together on the reform of the World Trade Organization. This, of course, is on the understanding that as long as we are negotiating, unless one party would stop the negotiations, we will hold off further tariffs, and we will reassess existing tariffs on steel and aluminum.”

Both sides agreed not to impose more tariffs or escalate trade disputes for the time being as negotiations progress. The EU has also agreed to buy billions of dollars worth of U.S. products such as soybeans and liquid natural gas. Currently the U.S. and EU have a $1 trillion bilateral trade relationship.

To read more about the free trade talks between the U.S. and EU, visit The Guardian and FOX Business.