Buenos Aires: US President Donald Trump and China's Xi Jinping agreed Saturday to suspend any new tariffs in the escalating trade war between the world's two largest economies, even if huge existing duties will remain in place.
Following more than two hours of dinner talks between the two leaders, the White House said an increase of tariffs from 10 to 25 percent due to kick in on January 1 would now be put on hold, providing room for intense negotiations.
The agreement, hashed out over steak in the Argentine capital Buenos Aires, lowers the temperature in a conflict that has spooked world markets.
The two leaders, who were in Buenos Aires for a summit of the G20 countries, called it "a highly successful meeting," the White House said.
"The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation," said Chinese Foreign Minister Wang Yi.