The toy industry can breathe a little bit easier today.

Confirming the reports that had been circulating all week, the potentially devastating 15% tariffs on more than $160 billion in imported goods — including toys — covered in List 4B have been called off. The U.S. and China entered into a Phase One agreement that was confirmed by President Donald J. Trump and the Office of the United States Trade Representative this morning. Under the new deal, tariffs set to go into effect on Dec. 15 will not be charged, though the previously-enacted 25% rate on $250 billion in Chinese imports will remain. A 7.5% tax will cover the remaining $120 billion in goods that were previously taxed at 15%.

The U.S. will modify its Section 301 tariff actions as it works toward developing a Phase Two agreement with China.

Under the Phase One agreement, China has agreed to purchase additional U.S. goods, primarily agricultural. Additionally, the calming in the trade war is further fueled by an effort to reign in the rampant IP theft in China, an issue that plagues the toy industry. The Phase One agreement requires structural agreements to IP and other areas.