Over the weekend, a temporary truce was agreed between US President Donald Trump and Chinese President Xi Jinping at the G20 meeting in Argentina.
China has said that Beijing and Washington will push forward with trade negotiations in the next 90 days and it is confident that an agreement can be reached but doubts remain over whether the two sides can resolve their deep differences.
The president's optimistic comments came one day after stock prices around the world plunged in response to a series of tweets he posted on Tuesday, warning a fragile accord between the two countries could crumble.
Trump, via Twitter, threatened to place "major tariffs" on Chinese goods imported into the United States if his administration is unable to reach an effective trade deal with Beijing.
White House trade adviser Peter Navarro on the trade truce between the US and China.
A USA government official briefed on the matter told Reuters on Monday that no final report on the investigation is expected for at least a couple of weeks. "China does not want Tariffs!"
In return for the postponement in the higher USA tariffs, the White House said China had agreed to step up its purchases of US farm, energy and industrial goods.
Trump jolted vehicle stocks by announcing late Sunday that a deal had been reached, following his dinner with Chinese President Xi Jinping on Saturday at the Group of 20 summit in Buenos Aires.
Chinese purchases of the goods collapsed after Beijing imposed tariffs on them in retaliation for USA import taxes.
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"President Xi and I want this deal to happen, and it probably will", Trump wrote on Twitter.
Trump agreed that on January 1, 2019, he will leave the tariffs on Dollars 200 billion worth of product at the 10 per cent rate, and not raise it to 25 per cent at this time.
China, for its part, also agreed to offset its massive trade imbalance with the U.S.by buying more, but not yet specified amounts, of energy products, agricultural, industrial and other products.
"He and I are the only two people that can bring about massive and very positive change, on trade and far beyond, between our two great Nations".
Trump has agreed to delay a rise in tariffs on China while talks continue. China has placed a 10 percent tariff on U.S. -LNG imports with the threat of increasing that figure in the future, resulting in China having to find alternate sources of the super-cooled fuel on the spot market.
The threat of further escalation in the trade war between the world's two largest economies has loomed large over financial markets and the global economy for much of the year, and investors initially greeted the ceasefire with relief.
Trump and White House aides have promoted the apparent U.S.
In return, China agreed to buy what the White House called a "not yet agreed upon, but very substantial" amount of US products to help narrow America's gaping trade deficit with China.
"China's discussed these things with the USA many times down through the years and the results have not been very good", he said.