BEIJING • China suspended additional tariffs on US products that had been due to kick in yesterday, after Washington and Beijing announced a major thaw in their trade war last Friday.

China will suspend the planned addition of 10 per cent and 5 per cent tariffs on some US imports, and "continue to suspend additional tariffs on US-made autos and spare parts", the country's Finance Ministry announced yesterday.

The move follows United States President Donald Trump's cancellation of new tariffs on Chinese products as part of a "phase one" trade deal.

China's Commerce Ministry said last Friday that it had agreed with the US on a mini-deal that includes a progressive rollback of tariffs and the protection of intellectual property rights.

The two sides have yet to sign the agreement, which represents a major breakthrough in the 21-month stand-off between the world's two largest economies.

US Trade Representative Robert Lighthizer said that under last Friday's agreement, China committed to buy US$40 billion (S$54 billion) of American farm products over the next two years.

He said China also promised to end its longstanding practice of pressuring companies to hand over their technology as a condition of market access.

The Customs Tariff Commission of the State Council said in a statement yesterday: "China hopes to work with the United States on the basis of equality and mutual respect to properly address each other's core concerns and promote the stable development of Chinese-US economic and trade relations."

Beijing had planned to impose 25 per cent duties on American-made cars yesterday, which would have raised the total charge to 40 per cent. Other goods were targeted for 10 per cent and 5 per cent penalties.

While a truce in the US-China trade war offers Chinese President Xi Jinping breathing space as he faces a slowing economy and political trouble in Hong Kong, experts warn that there are still challenges ahead for him.

Tussles over the most controversial Chinese trade practices - including steep state subsidies - have been left to future talks.

Nomura bank's Mr Lu Ting said the unexpected tariff rollback will have only a marginal impact on China's economy.

"The worst is not yet over, and 2020 looks set to be yet another tough year," he said.

AGENCE FRANCE-PRESSE, ASSOCIATED PRESS