Agree to temporary truce on new auto tariffs

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The tweets come as the president said China would commit to removing heavy auto tariffs on USA made cars. "He has his own position, I have my own position; we each stuck to our own views, but in any case I informed him about our perspective on this incident", he added.

The uncertainty underscored the risk entailed by Trump's eagerness to strike deals without nailing down details in advance. The deal amounts to a cease-fire in the series of escalating, tit-for-tat tariffs the USA and China have imposed on each other's goods throughout the year. It is also likely to be a good news for the stock markets in the United States and China.

If there is any further retaliation, Trump has warned, he will slap punitive duties on the remaining $267 billion in Chinese goods coming to the United States.

But the language used in the Trump administration's announcement of the deal was very different to that in Chinese government statements, especially on Beijing's promises to buy more USA goods and the possibility of removing existing tariffs.

"If they cancel the extra 25 percent tariff on USA -made cars, then we will see positive signs for imported cars", said director of the China Automobile Dealers Association's import committee, Wang Cun, according to Reuters. The two sides have been sparring since March, when Mr. Trump first began threatening tariffs on products imported from China.

Trump hit an additional $200 billion of Chinese goods with a 10 percent tariff that had been due to rise to 25 percent on January 1.

American Apparel & Footwear Association President and CEO Rick Helfenbein said the AAFA is "encouraged" by the news.

Trump said he and Xi "have a very strong and personal" relationship. The White House said intellectual property rights was one of the areas on which China agreed to negotiate further, but it did not say whether that topic had been discussed at the meeting. It then raised tariff rates to 40 percent amid the escalating trade war with the U.S. "90 days is not very long to resolve these differences".

'Discussion on economic and trade issues was very positive and constructive.

The cancellation means Trump will no longer face press questions over new developments this week stemming from a USA investigation into whether his presidential campaign colluded with Russian Federation, which has now spread to cover his past business dealings.

"Still, one must presume that as the existing and proposed tariffs are to spur China to address the US' IPR concerns, only action directly related to that would ultimately impact the 301 tariffs", he said.

Financial markets surged on the news of the ceasefire, with the benchmark Dow Jones Industrial Average up 1.2 percent, more than 300 points, about 30 minutes after the open, relieved that some of the immediate threat of further damage was averted. "Relations with China have taken a BIG leap forward!"

Just as importantly, these new agreements pave the way for the next round of trade negotiations between the two biggest economies in the world.

While Trump and Lopez Obrador both said they had a "great" first phone call after the latter's landslide victory in July, the two were at odds over the renaming of the updated agreement, with Trump insisting on listing the United States before other countries.