After delaying tariffs on some Chinese imports, US President Donald Trump confirmed that negotiations between the countries’ trade teams are progressing productively. While addressing reporters in New Jersey on Thursday, Trump stated, “September, the meeting is still on as I understand it, but I think more importantly than September, we’re talking by phone, and we’re having very productive talks.”

However, things don’t appear so rosy on the other side, with China vowing to retaliate to Trump’s most recently announced tariffs on $300 billion worth of Chinese goods. According to its finance ministry, these latest round of tariffs are in violation of the truce announced by the two world leaders at the sidelines of the G20 summit.

China maintains its hope that the two nations can meet each other halfway while negotiating a trade deal. Trump, however, insists that the trade deal should meet all of US’s demands. A trade deal with China is part of Trump’s reelection campaign for the 2020 Presidential elections.