Osaka: United States President Donald Trump and his Chinese counterpart Xi Jinping on Saturday agreed to bring down their standoff on trade war by removing an immediate threat looming over the global economy even as last piece remains elusive. As per reports, both the US and China have to once again start trade negotiation which broke down last month. Chinese media house Xinhua News Agency reported that Trump has agreed to impose no tariffs on Chinese goods and also stated that official statement regarding the same would released later in the day.

“We had a very good meeting with President Xi of China,” President Trump told reporters after the meeting on the sidelines of the Group of 20 summit in Japan. “Excellent. I would say excellent. As good as it was going to be. We discussed a lot of things and we’re right back on track.” The recent attempt of negotiation ends a six-week stalemate that has unnerved companies and investors and goes ahead to to prove that two of world's biggest economies are not in a cold war against each other.

Washington is open to a 'historic' trade deal with China, Trump said after his meeting with Jinping. "It would be historic if we could do a fair trade deal," Trump said at the start of the high-stakes meeting to thrash out a tariff war between the world's top two economies. Jinping opened the meeting by telling his US counterpart that 'cooperation and dialogue' are better than 'confrontation'.

The bilateral talks are the most highly anticipated event of the two-day G20 summit in the Japanese city of Osaka, even though experts see little chance of a full deal to end the damaging trade war between the two countries. The best that most experts expect is a truce, which would avoid the imposition of further tariffs, and open the way for additional discussions and an eventual deal.

"We were very close but something happened where it slipped up a little bit," President Trump added, in reference to the breakdown of previous negotiations. "We have had a lot of time together, we've become friends," Trump said, ignoring questions from reporters about what their talks would cover. "Chinese culture, it's an incredible culture," he said.