However, tariffs on US$200 billion worth of goods were previously set to increase from 10 percent to 25 percent from January 1, 2019. That would still take effect if the sides can not agree to a larger trade deal within the three-month window. At the same time, United States farmers have been hurt by reduced Chinese imports of soybeans and other products.
White House economic advisor Larry Kudlow said he expected the 25 per cent punitive tariffs on USA farm goods to be rolled back and urged China to take immediate steps to implement some of its commitments in order to give them "more credibility".
He added that Xi has sought to control the Indo-Pacific region, where the US previously had significance.
Asian shares were mostly lower Tuesday as traders questioned whether a 90-day truce in a tariff battle will allow the USA and China to resolve issues ranging from technology development to trade. USA officials for years have been pressing the Chinese government to take a tougher stance against fentanyl, and most US supply of the drug is manufactured in China.
What happens if there's no deal after 90 days?
Before Shen heads to Mexico, Xi will meet with Trump at the G20 summit in Buenos Aires as their trade war shows no signs of abating. President Trump has changed all that. He said he hopes China will criminalize fentanyl, the synthetic form of opioids largely shipped from China.
White House adviser Larry Kudlow, director of the National Economic Council, said Monday that no agreement had been reached on what the new tariff would be, but he expected levies to plummet.
Israel launches operation to cut off Hezbollah infiltration tunnels
It began when Hezbollah militants launched a raid into Israel, killing eight soldiers and kidnapping two others, who also died. The military did not disclose how many tunnels snake into Israeli territory from Lebanon or how long the operation would last.
"The explicit delay in tariffs is on the positive end of expectations", Bank of America Lynch China and Asia economist Helen Qiao said, according to CNBC.
Both presidents called the weekend meeting on the side-lines of the G-20 economic summit in Argentina, "highly successful". The truce in the trade war will offer a space for intense negotiations between the two giants to deal with the bilateral trade issues.
Further, the differences between the statements released by the U.S. and China suggest that the two sides hold substantial gaps about expectations for negotiations.
He said it "remains to be seen if real progress could be achieved during this narrow window to resolve the contentious issues, not just on trade, but also intellectual property".
"Given the complexity of interactions between the two economies, the rest of the world will still be holding its collective breath", it said.
Trump said he and Xi "have a very strong and personal" relationship.
Other news in the US took some of the spotlight off of Trump's trip.
"Trump's latest tweets this morning, which touted the benefits of the agreement for United States farmers and his own prowess as a dealmaker, suggest he will be reluctant to walk away from negotiations for a second time", he said.