Donald Trump says he is delaying plans to increase tariffs on Chinese goods after “significant progress” in talks to end the punishing US-China trade war.

The US president was planning to ramp up duties on $200 billion in Chinese imports this Friday, with tariffs increasing from 10 percent to 25 percent.

But on Twitter, Mr Trump said a number of breakthroughs have been achieved by Washington and Beijing on contentious areas including intellectual property protection, technology transfers, currency and agriculture.

He wrote: “A very good weekend for U.S. and China!”

Mr Trump added that he is prepared to meet with his Chinese counterpart Xi Jinping to conclude an agreement as long as “additional progress” is made by both sides.

He suggested that the summit could take place in Florida, where the two world leaders have held talks in the past.

And late on Sunday evening, he hinted there could be “very big news over the next week or two” if all goes well in negotiations.

Speaking to US governors at the White House, the US president said: “China has been terrific. We want to make a deal that’s great for both countries and that’s really what we’re going to be doing.”

Both Mr Trump and Mr Xi have been under immense pressure to resolve the trade dispute, which has unnerved investors and cast a shadow over the global economy.

The US and China have slapped import taxes on hundreds of billions of dollars of each other’s goods, rattling financial markets.

The conflict between the world’s two biggest economies began when the US accused China of stealing technology and forcing foreign companies to hand over trade secrets, in what has been regarded as an aggressive push to challenge America’s technological dominance.

-Sky News