In a separate tweet Monday, Trump described his Saturday meeting with Chinese President Xi Jinping at the Group of 20 summit in Argentina as "extraordinary", saying "relations with China have taken a BIG leap forward!" "In contrast to the fear - especially in Asia - that the hawks in USA administration would make impossible demands, evidence of President Trump working towards a trade deal with China has emerged".
After 90 days, if there's no progress on structural reform, the US will raise those tariffs to 25 percent, White House Press Secretary Sarah Huckabee Sanders said in a statement. The US has its own import tariff on Chinese-made cars, totaling 27.5 percent.
The two countries are also at odds militarily over China's extensive claims in the South China Sea and US warship movements through the highly sensitive Taiwan Strait.
The main outcome of the deal between presidents Donald Trump and Xi Jinping is that the United States won't escalate the trade war on January 1, the date when tariffs on billions of dollars of Chinese imports were set to increase to 25 percent from 10 percent.
In return, China is to purchase "very substantial" amounts of agricultural, energy, industrial and other products from the United States.
Beijing and Washington now have 90 days to make progress in talks over the main issues, which include USA complaints that China forces American companies to hand over technology and steals their intellectual property through hacking. At the same time, USA farmers have been hurt by reduced Chinese imports of soybeans and other products.
In another long-sought concession to the U.S., China agreed to label fentanyl, the deadly synthetic opioid responsible for tens of thousands of American drug deaths annually, as a controlled substance. Americans will get majority ownership in companies in China for the first time, which should help address those issues, he said on CNBC.More news: W. Bush, the 41st United States president, dies
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Both countries agreed they will try to have this "transaction" completed within the next 90 days, but if this does not happen then the 10 per cent tariffs will be raised to 25 per cent, it added.
Prior to having dinner with Trump, Xi said he was "very happy" to have an opportunity to address issues with the USA leader.
China has sought to bolster relations with other countries and forge new economic partnerships this year, as its relationship with the United States faces new strains over trade.
Global stock markets have jumped following the truce in the US-China trade war. As part of the agreement, Trump - who called the deal "incredible" - said that he'll delay the United States' plan to impose tariffs on $200 billion in Chinese goods.
The president also touted his personal relationship with Chinese President Xi, suggesting that it would be very productive in the future. Trump wrote on Twitter.
"With Trump himself having personally negotiated the latest deal, this one has a much greater chance of leading to a lasting truce", he wrote in a research note. Will President Xi be willing to encourage USA technology firms to set up and access similar benefits to Chinese firms, which could possibly threaten the 2025 vision?