President Donald Trump has announced that trade talks between China and the U.S have made ‘substantial progress’ as he confirms delays to any further tariff increases.

China and the U.S are the world’s two largest economies, and the trade war has had a significant knock-on effect for economies and currencies around the world. The International Monetary fund last year warned that the trade was risked making the world ‘a poorer and more dangerous place’ in its assessment of the global economy.

As of March 1st, import duties on goods arriving from China into the U.S were set to rise to 25% from the current 10% rate. Chinese President Xi Jinping had originally asked for a 90-day extension on increases, which was rejected by Trump’s government. However, a 60-day delay is still being considered.

At the time of writing, there is no confirmed date for Xi to meet Trump to agree a final deal.

The trade war was originally instigated by President Trump after there were complaints of unfair Chinese trading practices, including theft of intellectual property and currency manipulation. The original tariff increase came into effect in late August 2018, with further hikes already delayed once.

In the wake of recent developments, the Chinese economy has surged, with the Shanghai market seeing the most significant gains at 3.5%. Chinese media has echoed Trump’s sentiment today, with a general trend of optimism seen towards a settlement being reached in the coming weeks.