China agrees to 'reduce and remove' tariffs on US cars: Trump

China has agreed to scale back tariffs on imported US cars, President Donald Trump said Sunday, one day after agreeing with Xi Jinping to a ceasefire in the trade war between the world's top two economies.

Asia stocks had rallied on the news that Washington and Beijing would not impose any new tariffs during a three-month grace period, during which the two sides are meant to finalize a more detailed agreement.

"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40 per cent," Trump said on Twitter.