President Trump said Monday that trade talks with China were going better because both sides had reached a mutual understanding on the terms.

“I think we’re going to have a deal, because now we’re dealing on proper terms," Trump told reporters at the G-7 summit in Biarritz, France. "They understand and we understand.”

He added, "This is the first time I’ve seen them where they really want to make a deal. And I think that’s a very positive step."

Earlier in the day Trump tweeted, "Great respect for the fact that President Xi & his Representatives want 'calm resolution.' So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!"

Great respect for the fact that President Xi & his Representatives want “calm resolution.” So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!https://t.co/0sotrd1Mzh — Donald J. Trump (@realDonaldTrump) August 26, 2019

The White House and China were set to continue talks next week, but Trump had previously said they could be called off. The administration had escalated the trade war rhetoric over the weekend, saying that the president had considered raising tariffs even higher.