The president of the United States, Donald Trump and Xi Jinping, the president of China have agreed upon keeping the trade war in check thereby preventing it from escalating.
According to the state run TV of China, the two have promised to put a temporary halt to the imposition of new tariffs and that the two largest economies of the world have negotiated an agreement that is lasting.
On the sidelines of the G20 summit at the dinner which was held on Saturday, the two countries came to a truce.
The summit is being held in Argentina. CGTN which is a state run television network of China reported that as a part of the truce no further imposition of taxes will take place after 1st of January 2019.
Until the G20 summit, the investors have been wary regarding the outcome of the meeting of the two presidents and most analysts were anticipating a not so favourable outcome of the meeting.
However the investors were hoping that the trade war between the two countries might come to an end thereby relieving the economy of the world.
Due to the imposition of such heavy taxes on the import of goods by each other, there has been a serious ramification not just for the economy of the other countries but also for their own where their GDP as well as trade has suffered.
The White House stated that the meeting between Trump and Jinping lasted longer than it was scheduled for, taking two hours on the whole. However, no other immediate comments were made by the White House.
This meeting at the G20 summit was the first face to face meeting between the two presidents and the world is hoping that it would bring in some good news for the trade and economy.
Source: BloomBerg, AGWeb