Donald Trump has said he will extend a deadline to hike tariffs on Chinese imports, citing “substantial progress” in weekend talks between the two countries.
The US President tweeted on Sunday that there had been “productive talks”, adding that: “I will be delaying the US increase in tariffs now scheduled for March 1.”
Trump says that, if negotiations progress, he will meet with Chinese President Xi Jinping at his Florida resort to finalise an agreement.
US and Chinese negotiators met through the weekend as they seek to resolve a trade war that has rattled financial markets.
Trump had warned he would raise tariffs he has imposed on billions of dollars of Chinese imports from 10 to 25%, if the two sides failed to reach a deal.
Speaking at an annual White House black-tie ball on Sunday, Trump said he was doing “very well” with China.
“If all works well we’re going to have some very big news over the next week or two,” he said, though he took care to add that “we still have a little ways to go”.
Asian stock markets rose following his announcement.
The Shanghai Composite index jumped 5.5%, while other markets in the region also rose, but by smaller margins.
Hong Kong’s Hang Seng index added 0.5% while Tokyo’s Nikkei 225 also climbed 0.5%.
The world’s two biggest economies have been locked in a conflict over US allegations that China steals technology and forces foreign companies to hand over trade secrets in an aggressive push to challenge American technological dominance.
The two counties have slapped import taxes on hundreds of billions of dollars of each other’s goods.
The conflict has unnerved investors and clouded the outlook for the global economy, putting pressure on both leaders to reach a deal.
On Twitter, Trump said the two sides had made headway on issues including protection of trade secrets, forced technology transfer and US agricultural sales to China. But the administration did not immediately provide details.
Business groups and politicians in Congress want to see a comprehensive deal that forces the Chinese to change their behaviour and that can be enforced.
The US has accused China of failing to meet past commitments to reform its economic policies.