China has agreed to “reduce and remove” tariffs below the 40% level Beijing is currently charging on US-made vehicles, US President Donald Trump said, as a trade-war truce between the two countries gathers pace, cheering markets. Trump and Chinese President Xi Jinping agreed to hold off on new tariffs during talks in Argentina on Saturday, declaring a truce following months of escalating tensions on trade and other issues. In a meeting lasting two and a half hours, the US agreed not to raise tariffs further on January 1, while China agreed to purchase more agricultural products from US farmers immediately. The two sides also agreed to begin discussions on how to resolve issues of concern, including intellectual property protection, nontariff trade barriers and cyber theft. But the White House also said the existing 10% tariffs on $200bn worth of Chinese goods would be lifted to 25% if no deal was reached within 90 days, once again setting the clock ticking. Tweeting on Sunday night,...

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