Trump agreed not to raise tariffs rates for the $200 billion worth of Chinese goods from 10 percent to 25 percent as originally planned by January 1, 2019, after the two leaders reached consensus during their dinner meeting in Argentina to start negotiations that would address U.S. concerns on China's trade practices.
In addition, the USA said China agreed to "purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other products from the United States".
Beijing, too, will hold off on escalating in the meantime with retaliatory action, working instead to purchase what the White House has said will be a "very substantial" amount of US goods in the agricultural, energy, and industrial sectors.
The two presidents agreed that the two countries "can and should" ensure success of China-U.S. relations and that coordination, cooperation and stability should be the features of the bilateral relations, said the Chinese official.
President Trump left the Group of 20 summit in Argentina with an agreement not to raise tariffs on Chinese goods in the next 90 days, the White House said.
Regarding the impact on agriculture, Trump claimed Chinese purchases would immediately make farmers "a very BIG and FAST beneficiary", although there is no agreement yet on agricultural issues.
"The Chinese public needs to keep in mind that China-US trade negotiations [will] fluctuate. Farmers, I LOVE YOU!" he said.
Last year, the country imported vehicles worth $51 billion with more than a third coming from North America, China's Passenger Car Association revealed.
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The steps agreed so far seem to be leading trade agreements down the right path. Beijing has also agreed to designate Fentanyl as a controlled substance, which is great news it is reportedly causing an epidemic of opioid-related deaths in the US. "It is my great honor to be working with President Xi".
Trump announced the deal in a two-sentence Twitter post late Sunday.
Trump has long railed against China's trade surplus with the United States and Washington accuses Beijing of not playing fairly on trade.
One expert said China would have to address U.S. complaints about China's forced transfer of intellectual property rights - a major issue at the core of a USA "301" trade investigation - for Washington to drop its tariffs. China says the two sides also agreed to open up their markets, the BBC reported.
China-made e-bikes and e-bike motors will remain subject to the 25 percent tariff imposed in August.
USA officials insist that the American economy is more resilient to the tumult than China's, but they remain anxious of the economic effects of a prolonged showdown - as Trump has made economic growth the benchmark by which he wants his administration judged.
Trump made the announcement in a tweet late Sunday in the United States, saying Beijing will "reduce and remove" the tariffs, which now stand at 40%. "It goes down, certainly - if it happens, it goes down as one of the largest deals ever made", Mr. Trump told reporters aboard Air Force One as he returned from Argentina.
Dealing with the central issue of China's forced technology transfers and subsidies "will require time, communication and good-will - a rare trifecta these days", he said.