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Trade war

Trump and Xi declare a temporary truce to cool trade war tensions

US keeps tariffs at current rates for 90 days to cement new deals with China

U.S. President Donald Trump and Chinese President Xi Jinping, accompanied by aides, attend a working dinner after the G-20 leaders summit in Buenos Aires, Argentina on Dec. 1.    © Reuters

BUENOS AIRES, Argentina -- U.S. President Donald Trump and Chinese President Xi Jinping declared a temporary truce in their trade war on Dec. 1 after Washington agreed to a 90-day extension on the imposition of additional tariffs and Beijing pledged to buy a "substantial amount" of U.S. products to reduce the trade imbalance.

The cease-fire came on the sideline of the Group of 20 summit, where the two leaders discussed ways to de-escalate trade tensions between the world's top two economies. However, the talks also set the stage for difficult negotiations until March to address deep-rooted structural issues that are hindering a lasting agreement, leaving many experts to believe the two countries could soon clash again.

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