China and the U.S. have agreed to hold off on implementing the next wave of tariffs that had been set for Jan. 1, in order to discuss and negotiate future commercial relations.

U.S. President Donald Trump reached the agreement with Chinese President Xi Jinping at the G20 Summit that took place last week in Buenos Aires.

"President Trump has agreed that on January 1, 2019, he will leave the tariffs on US$200 billion worth of product at the 10% rate, and not raise it to 25% at this time," a White House release said.

"China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries. China has agreed to start purchasing agricultural product from our farmers immediately."

The two presidents have agreed to begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture, the release said.

Both parties agreed that they will endeavor to have this transaction completed within the next 90 days, it added.

However, the statement said that if at the end of this period of time the parties are unable to reach an agreement, the 10% tariffs that the US has implemented will be raised to 25%.

“This was an amazing and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi,” said Trump.

Xi was quoted as saying: "Only with cooperation between us can we serve the interest of world peace and prosperity.”