United States President Donald Trump has announced that China has agreed to "reduce and remove" tariffs, which currently stand at 40 per cent, on US-made cars that are exported to China.
"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%," Trump tweeted on Monday.
Trump made the announcement after he met his Chinese counterpart Xi Jinping on the sidelines of the G-20 Summit in Argentina on Saturday.
Both the leaders agreed to halt the escalating trade war between the nations by agreeing to a temporary truce during their dinner on the G-20's sidelines.
Trump agreed to not raise the current 10 per cent tariffs on the USD 200 billion worth of Chinese goods to 25 per cent following a two-and-a-half hour discussion with Xi in Argentina, CNN quoted White House Press Secretary Sarah Sanders as saying.
December 1 was the original deadline for the Trump Administration to go ahead with the plans. However, Trump said the tariffs would not be hiked "at this time."
On the other hand, China agreed to purchase "very substantial" amounts of agriculture, energy and other goods in order to restore trade balances.
The meeting came as a thaw in straining ties between the nations due to an escalating trade war that was seen in the last few months.
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