G20 Summit: The US and China have agreed to resume trade talksNo new tariffs on $300bn worth of Chinese goods
A truce agreed last December collapsed and in May the US raised tariffs on $200bn of Chinese products to 25% from 10%. Again China retaliated with tariff on $60bn of US goods.
The US began planning to hit an additional $300bn of Chinese goods but, at the G20 in Japan in June, Mr Trump called that off.
The US and China have agreed to resume trade talks, easing a long row that has contributed to a global economic slowdown.
Mr Trump also said he would allow US companies to continue to sell to the Chinese tech giant Huawei, in a move seen as a significant concession.Mr Trump had threatened additional trade sanctions on China. However, after the meeting on the sidelines of the main G20 summit in Osaka, he confirmed that the US would not be adding tariffs on $300bn (£236bn) worth of Chinese imports. He also said he would continue to negotiate with Beijing "for the time being".
The truce signals a pause in hostilities rather than a resolution of the dispute, which has caused market turbulence and hit global growth.
Mr Trump said his meeting with Mr Xi was "excellent, as good as it was going to be," adding: "We discussed a lot of things and we're right back on track and we'll see what happens."
China's state news agency Xinhua quoted Mr Xi as saying: "China and the US have highly integrated interests and extensive co-operation areas and they should not fall into so-called traps of conflict and confrontation."