DONALD TRUMP has announced on Twitter that China has agreed to reduce tariffs on US cars as the budding trade war between the US and China seems to have temporarily reached a truce.
Stocks jumped higher on Monday after Washington and the US said they would hold fire on further tariffs. Hours after the announcement, the US President confirmed the investors' hopes and tweeted: “China has agreed to reduce and remove tariffs on cars coming into China from the US. "Currently the tariff is 40 percent.”
Last week, the American firebrand ordered a review of China’s 40 percent tariff on auto imports from the US.
It emerged that 25 percentage points are the result of Chinese retaliation against Trump's tariffs on imports from China.
China and the US reached a temporary ceasefire in their trade war during “highly successful meeting” between President Trump and President Xi Jinping at the G20 on Saturday.
The two world leaders met for a dinner meeting to discuss trade at the sidelines of the Group of 20 leaders’ summit.
They spoke for around two and a half hours and the discussion ended with Trump agreeing to hold off on raising existing tariffs on $200billion pending new talks.