U.S. President Donald Trump on Sunday said trade talks a day earlier with China had been “very productive,” , as negotiators worked ahead of a March 1 deadline for the imposition of further U.S. tariffs on Chinese imports.

Trump said on Twitter this morning that discussions would continue on Sunday. The U.S. and Chinese delegations have been meeting for trade talks for five days straight.

As talks proceeded Saturday, both sides reported narrowing their differences.

Officials are trying to come to terms on an array of complex issues governing the relationship between the world’s two largest economies, including China’s currency policies and the enforcement of intellectual property rights.

Trump said there was a “good chance” a deal would emerge, and that he might extend the March 1 deadline and move forward with a meeting with Chinese President Xi Jinping.

The U.S. is set to increase tariffs on 200 billion dollars of Chinese imports to 25 per cent from 10 per cent unless Trump decides to delay it.

The imposition of tariffs by both countries and the threat of more severe action has been a major source of global economic tension in recent months.

The situation has contributed to recent large swings in equity markets, and is considered by some to be a key reason why business investment has slowed down of late.

Trump and President Xi Jinping reached a ceasefire in December, agreeing to put further tariffs on hold as the sides tried to negotiate for 90 days.

Trump also praised China for being “very helpful” on North Korea.

(Reuters/NAN)