President Trump has posted his plans on Twitter to delay imposing additional tariffs on all Chinese goods. Though a new deadline is not specified, a new levy of tariffs has been suspended.
On Saturday, talks to bring the trade war to an end were going on for almost seven hours.
The tariffs have affected the global economy to a large extent. The financial markets have slowed down and investors are looking for signs to see if the trade war between China and the U.S. would end.
President Trump has presently announced that the March 1 deadline is postponed to a later date.
The two countries China and the U.S. are eager to end the trade war. With negotiations going on fervently, measures are taken to bring the tariff war to end.
The deadline announced was March 1, but negotiations are still going on, though they have not reached a definite conclusion. But the announcement by President Trump to postpone the deadline has been very positive.
Officials from both countries, Beijing and Washington are holding talks to come to an understanding. Though there are some structural issues, both sides are narrowing down on their differences.
The U.S. President has further announced a meeting with his Chinese counterpart.
Almost all Asian markets have ended positively after Monday trade.
The Chinese market has reacted very positively to the announcement. The Shanghai composite went up by 5.6 percent as it closed at levels of 2,961.28. The Shenzhen composite was up 5.417 percent and closed at 1,557.27.
The Hang Seng index went up by 0.52 percent and closed at 28,959.30. The Nikkei was also up by 0.48 percent as it closed at 2152.23 points. The ASX 200 was up by 0.31 percent as it closed at 6,186.30.
President Trump has made a series of tweets saying that there is substantial progress in the trade talks and structural issues are addressed.