China agrees to 'reduce and remove' tariffs on U.S cars: Trump

China has agreed to scale back tariffs on imported U.S cars, President Donald Trump said, one day after agreeing with Xi Jinping to a ceasefire in the trade war between the world's top two economies.

Asia stocks had rallied on the news that Washington and Beijing would not impose any new tariffs during a three-month grace period, during which the two sides are meant to finalise a more detailed agreement.

"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40 per cent," Trump said on Twitter.

On Saturday, Trump and Xi agreed to put a stop to their tit-for-tat tariffs row, which had roiled world markets for months.

The Republican president called their agreement -- which Washington hopes will help close a yawning trade gap with the Asian giant and help protect U.S intellectual property -- an 'incredible' deal.

Trump agreed to hold off on his threat to slap 25 per cent tariffs on USD 200 billion worth of Chinese goods from January 1, leaving them at the current 10 per cent rate.