Over the last 18 months, Trump has slapped tariffs of between 15% and 25% on about $360 billion of products imported from China, prompting retaliation from Beijing that has caused a chill in investments at many businesses.
Friday's move comes after The Wall Street Journal and CNBC reported Thursday the US agreed to a so-called phase one trade deal with China in principle, citing sources.
Trump said on October 11 that a phase-one deal had been agreed with China, which includes Chinese purchases of $40 billion to $50 billion worth of US agricultural products annually, and better protections for intellectual property rights.
In a press conference minutes earlier, however, China's State Council said it expected all US tariffs on Chinese products to be phased out in stages. China has also pledged to make sizeable agriculture and services purchases while the United States agreed to significant changes to Section 301 tariffs.
The Trump White House initially laid out ambitious plans to restructure the United States' relationship with China, including addressing what a 2018 United States Trade Representative investigation concluded were Beijing's "unfair, unreasonable, and market-distorting practices".
China has agreed to boost imports of USA energy, pharmaceutical and agricultural products, although Chinese officials offered no details on the amount of US agricultural goods Beijing had agreed to buy, a sticking point of the lengthy negotiations.
But Chinese officials announced they have agreed on the text of 'phase one'. China agreed to significant purchases of USA agricultural products, but failed to give a specific amount, disappointing some investors who expected a firmer commitment.
Trump has long criticized the massive trade deficit between the USA and China and in May 2017 rolled out steel and aluminum tariffs that launched what's become a multibillion-dollar trade war between the two nations.
The trade war has been a key part of worsening relations between Beijing and Washington, at their lowest point in decades.
On Thursday morning, Trump tweeted that the U.S. has moved close to a trade deal with Beijing after several false starts and near misses.
Value of tariffs placed on USA goods, showing those imported into China have been hardest.
Before Friday's announcement, Chinese Foreign Minister Wang Yi had complained at a government-organized forum in Beijing that Washington was unfairly attacking China.
UPDATE 10:30 a.m. ET - China has now announced it has agreed to an initial deal with the U.S.
Chinese officials framed the trade agreement as conducive to China's current stage of economic development, and in line with the growing expectations of its expanding middle class.
The 15 December tariffs, which would have goods including Chinese-made cell phones, laptop computers, toys and clothing, were scheduled to go into effect at 12.01am on Sunday.
"We want to see evidence that things aren't deteriorating and if tariffs are getting delayed or rolled back, that's evidence". Some experts say it's possible that talks may be suspended altogether until after the USA presidential election in November 2020.