Trump's comments, if ratified, would also hand automakers like Tesla Inc. a potential reprieve after higher levies hit sales in the world's biggest vehicle market.
On Wall Street, futures pointed to opening gains of 1.9% for the S&P 500 and 2.1% for the Dow Jones Industrial Average. They intend to start purchasing agricultural product immediately.
There are several significant take-aways from this development, including the argument that Trump's hard line, even at times belligerent stance with Beijing, has caused them to blink first, particularly since economic growth in China has already started to feel the brunt of USA tariffs, while US economic growth, though not as robust as a few months ago, is still strong.
Washington agreed to delay a tariff increase on more than 200-billion US dollars' worth of Chinese imports to 25-percent from 10-percent originally planned to go into effect on January 1st, . while China agreed to resume purchases of USA farm and energy commodities.
"For now, postponement is good news".
China's imports of US commodities had shown strong growth prior to the imposition of tariffs in the middle of this year.
The US simultaneously threatened to add tariffs to a further $267 billion (£205 billion) of products.
After being spooked by the conflict, investors returned to buying following the long-awaited meeting between the two presidents.
The two sides also agreed to negotiate during the next 90 days over "structural changes" to China's policies on technology transfers, intellectual property protection, non-tariff barriers, cyberintrusions and cybertheft, services and agriculture. "Relations with China have taken a BIG leap forward!"
Wang Tao is the head of Asia economics and chief China economist of UBS Investment Bank.
The ceasefire follows months of tensions and tit-for-tat custom duties on hundreds of billions of dollars worth of goods that raised fears of an escalation harmful to the global economy.
Unlike the North Atlantic Treaty Organisation and G7 summits of earlier this year, the president did not immediately undercut his signing of the summit document by trashing the G20, its participants, or the agreement itself.
Chinese state media gave a cautious welcome on Monday to the trade war truce. Meanwhile, futures in China dropped on expectations of increased supply, with soybean meal on the Dalian Commodity Exchange losing 3.4 percent to 2,953 yuan a metric ton, the lowest since June.
The truce, reached after a dinner of more than two hours Saturday, buys time for the two countries to work out their differences in a dispute over Beijing's aggressive drive to supplant USA technological dominance.
Mr. Trump provided no details of how much of a reduction China had agreed to, and Beijing did not immediately confirm that any deal had been reached to readjust the harsh tariffs, which were brought into effect in July amid an escalating trade war.
What's missing in China's official statement? The forum was created 19 years ago with the explicit goal of fostering rules-based globalization, more worldwide trade, and more participation of diverse developing countries in the global system.
Though analysts still see the Fed raising rates this month and boosting them further next year, a slower pace of increases would offer a potential respite for risk assets, pressured by tightening monetary policy.
The US firm has said it will cut prices to absorb more of the tariffs and is building a local plant in Shanghai.
But Mnuchin said, "I think there's no question the president's tariff strategy has worked".