The United States on Tuesday delayed new tariffs on Chinese-made goods like cell phones and toys until December 15.
The decision came in the wake of a phone call between US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese negotiator Liu He, according to CNN.
As per the Chinese Commerce Ministry, the two sides agreed to continue negotiations through phone within two weeks.
The decision by Washington had a direct effect on the market as stocks surged.
Following the decision, US President Donald Trump tweeted, "As usual, China said they were going to be buying "big" from our great American Farmers. So far they have not done what they said. Maybe this will be different!"
The Trump administration had last year imposed tariffs on Chinese-made goods amounting to about USD 250 billion.