In December, Trump and his Chinese counterpart, Xi Jinping agreed a temporary truce on their ongoing trade war, after the two leaders had dinner together at the annual G20 summit in Argentina and agreed a 90-day delay on tax increases, in the hope that a more lasting deal could be negotiated in that time.
Trump has made cutting a trade deal with China a priority.
The announcement comes on the heels of other positive developments with regards to the trade relationship between the USA and China.
"If the USA has already achieved quite a bit, and we are just clarifying the details of substantial Chinese concessions, then that's not a huge concern", said Scott Kennedy, a China expert at the Center for Strategic and International Studies.
Earlier this month, Bill Lee, the chief economist at Milken Institute, stated that the Chinese government is desperate to land a deal with the us due to its struggling domestic market.
Others in Beijing had mixed feelings, but welcomed the news.
The rise in import duties on Chinese goods from 10% to 25% was meant to come into effect on Friday 1 March.
The increase in tariffs now scheduled for March 1.
"As a result of these very productive talks, I will be delaying the United States increase in tariffs now scheduled for March 1". He set no new date.
In the tweet, he said the USA had "made substantial progress" on many important issues in its trade talks with China, including intellectual property rights, technology transfer, agriculture and currency exchange.
USA stock increases followed huge boosts Monday in China's stock markets and modest gains in other Asian and European markets. "There are mixed feelings about the tariffs".
Analysts say the two sides are likely to trumpet mutual agreements to resolve the easier parts of the trade dispute - increasing purchases of American goods, more open investment in China and tougher protections for intellectual property and proprietary technology. Washington wants Beijing to roll back plans including "Made in China 2025", which calls for government-led creation of global competitors in robotics and other technology.
Energy stocks rose despite a drop in oil prices, with the April crude contract down US$1.78 at US$55.48 per barrel after Trump also tweeted that the global economy couldn't handle a price hike.
American companies worry U.S.
"There may be what we refer to as "window guidance": where there is a written law or regulation, but verbally there may be additional points that are communicated to a company in order to receive a particular approval", he said.
Investors were also wary of weakening estimates for current quarter earnings, with Wall Street on Monday expecting a 0.9 percent decline in S&P first-quarter earnings per share compared with expectations for 5.3 percent growth on January 1, according to IBES data from Refinitiv.
About one-fifth of firms have moved or are considering moving production outside of China, with the tariffs and rising costs top reasons, according to the survey.
UBS reported in January that 37 percent of 200 manufacturers surveyed by the bank have shifted out of China over the past 12 months.