Certain will talk to Xi, Putin about halting arms race some time in the future: Trump

Washington, DC, USA

Two days after US President Trump agreed to freeze tariffs against Chinese goods during his meeting with President Xi at G20, the US president said he has a "strong and personal relationship" with the Chinese leader.

"He and I are the only two people that can bring about massive and very positive change, on trade and far beyond," he said, adding that a "solution" for "North Korea was a great thing for China and for everyone."

The White House had said earlier that the President had agreed he will leave the tariffs on $200 billion worth of products at the 10 per cent rate and not raise it to $25 per cent.

According to White House, China also agreed to purchase "very substantial" amount of agricultural, energy, industrial, and other product from the United States to "reduce the trade imbalance between our two countries."

President Trump and Xi had a marathon two and half hour meeting in which the two leaders decided to temporarily call truce for the next 90 days on the escalating trade war.

"Farmers will be a very big and fast beneficiary of our deal with China," the US president said in his tweet. "They intend to start purchasing agricultural product immediately. We make the finest and cleanest product in the World, and that is what China wants," he asserted.

On the arms race, the president said: "I am certain that, at some time in the future, President Xi and I, together with President Putin of Russia, will start talking about a meaningful halt to what has become a major and uncontrollable arms race."

"The US spent $716 billion this year. Crazy!"

Trump and Xi have also agreed to "immediately" begin negotiations on "structural changes" on technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft.

"Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!" he said in an early morning tweet on Monday.

Further, the US president revealed that China had agreed to reduce and remove tariffs on cars coming into China. The US currently imposes 40 per cent tariffs, he informed.

Meanwhile, Treasury Secretary Steven Mnuchin said on Monday that the US will need to see "something concrete" from China on trade in the next 90 days to build a real agreement.

He said for the first time there was "a clear path" to reduce the US trade deficit with China to zero.

Global equity markets soared on Monday after China and the United States announced a breakthrough in the trade war. Frankfurt stocks, London's FTSE and the stock markets in Paris all gained after the announcement on Monday.

Hong Kong and Shanghai stocks also climbed as the tit-for-tat tariff war was halted for the next 90 days between the two world powers.