US President Donald Trump says China has agreed to “reduce and remove” tariffs on US cars below the 40 per cent level that Beijing is currently charging on American-made vehicles.

A day after he and Chinese President Xi Jinping called a 90-day ceasefire in their trade war to allow time for negotiations, Trump tweeted the agreement.

China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.

— Donald J. Trump (@realDonaldTrump) December 3, 2018

But Trump’s tweet does not specify a new level for the Chinese tariffs.

After a dinner with Xi on Saturday in Buenos Aires, Trump agreed to postpone an increase in the tariff rate on $US200 billion worth of Chinese imports to 25 per cent from 10 per cent.

China also agreed to resume purchases of some US farm and energy commodities.

The two sides also agreed to negotiate “structural changes” to some of China’s policies over the next 90 days.

International trade expert and APEC Study Centre Chairman Alan Oxley joins Ross Greenwood with the details.

Click PLAY below to hear the full interview