US President Donald Trump will delay a planned tariff hike on $250bn (£202.8bn) of Chinese goods as a "gesture of good will".
The tariffs were set to increase to 30 per cent from 25 per cent on the goods.
In a tweet, Mr Trump said a 5% increase to duties scheduled for 1 October will be postponed for two weeks.
American farmers have born the brunt of the US-China trade spat, especially after US soy exports collapsed last year, virtually wiping out foreign markets farmers had spent years cultivating.More news: Samsung Will Offer Discounted Galaxy Fold Repairs to Alleviate Screen Worries
China said it would exclude 16 categories of products from retaliatory tariffs beginning next week ahead of talks to resolve the U.S. China trade war that has proven a drag on both countries' economies.
The Chinese Finance Ministry announcement earlier the in day mostly impacts small items such as fish food, cancer medicine, lubricant oil and various chemicals.
Against that backdrop, both sides are preparing to return to the negotiating table.More news: Google officially announces its Apple Arcade-rival Play Pass is 'coming soon'
Deputy trade negotiators are due to meet in Washington in mid-September, with minister-level talks to follow in October.
Mr Trump has imposed or announced penalties on about 550 billion dollars (£445 billion) of Chinese products, or nearly everything the United States buys from China.
For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.
Trump has said the protracted trade war is damaging China more than the United States.More news: Eighteen years on, U.S. mourns 9/11 victims
Since past year, the two countries have traded tariffs on more than $360 billion in two-way trade.
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