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The truce pulled the United States and China back from an escalating trade war that was threatening world economic growth and had set global investors on edge.

The deal was cheered by United States business groups and preceded a jump in stocks Monday.

"It's great the two sides took advantage of this opportunity to call a truce", said Andy Rothman, investment strategist at Matthews Asia.

That 90-day period will begin on January 1, White House economic adviser Larry Kudlow told reporters. USA officials also want to talk about Chinese laws requiring the release of technology secrets by American companies that want to do business in China.

Following the Trump-Xi talks, which took place over dinner at the end of the G20 summit, Washington agreed to hold off on Trump's threat to slap 25 per cent tariffs on Dollars 200 billion worth of Chinese goods from January 1, leaving them at the current 10 per cent rate. They also want negotiations on issues like intellectual property rights and protection of cyber technology.

The claims that Russian Federation has any influence on Donald Trump are absurd, Kremlin's press-secretary Dmitry Peskov said.

President Trump and Chinese President Xi Jinping approved a deal on Saturday at the Group of 20 meeting in Argentina. US officials for years have been pressing the Chinese government to take a tougher stance against fentanyl, and most USA supply of the drug is manufactured in China. "Very good things will happen".

The move, if realized, would bolster U.S. vehicle manufacturers that were hit hard when China ramped up levies on US-made cars in July as part of a broad package of retaliatory tariffs amid a sprawling trade war between Washington and Beijing.

Both of these issues have implications for the trade war. Among those questions is what exactly was agreed to in Saturday's meeting. In their own statements, Chinese officials made no mention of the three-month deadline.

The United States had a $335.4 billion trade deficit with China in 2017.

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President Trump promised President Xi the USA would hold off on raising US tariffs on $200 billion in Chinese goods from 10 percent to 25 percent.

He said for the first time there was "a clear path" to reduce the United States trade deficit with China to zero. China retaliated with tariffs on $110 billion of U.S. imports.

Ian Shepherdson, the chief economist at Pantheon Macroeconomics, said the short-term deal was a "face-saving measure that allowed both sides to come away with wins for their domestic audiences". Each side agreed not to increase tariffs on the other's exports for the next 90 days while they negotiate details of a trade agreement.

The Chinese responded identifying Monday as its target.

Trump agreed to delay the scheduled U.S. tariff increase for 90 days while the two sides negotiate over the administration's technology-related complaints.

Contrast that with the USA statement, which focused more narrowly on the truce's benefits for its side.

Yet reaching a permanent peace will hardly be easy.

This could lead to another punt, similar to Trump's delays on imposing the steel and aluminium tariffs on allies, Krueger said. China will be opening up, China will be getting rid of tariffs.

Ahead of the Trump-Xi meeting, some forecasters didn't think the tariff increase could be avoided, making the outcome a positive one for financial markets. "We see it as somewhat to very likely given these dynamics that negotiations begin to fray and the threat of a tariff hike to 25% with an additional tariff package as further leverage reenter market considerations".