President Trump said on Twitter that both sides had made “substantial progress” in trade talks and that he was planning a summit with his Chinese counterpart Xi Jinping in Florida to close the trade deal if more progress was made.

Although, if the US and China do not reach a new trade agreement by next month duty on each country’s products will rise to 25%, up from the current 10% level.

The US has already imposed tariffs on $250bn worth of Chinese goods and China has retaliated by imposing duties on $11bn of US products. The US tariffs that were to be imposed on Friday were on a further $200bn worth of Chinese goods.

The  trade war has unnerved financial markets and economists have feared it could impact on the global economy.

Last year the IMF warned the trade war between the two mega economies could have a negative impact on world’s growth.