The United States and China have extended their tariff deadline for another 90 days, preventing an escalation of the trade war between the world’s two largest economies, with markets rallying after President Donald Trump announced the pause.

President Donald Trump on Monday extended a tariff truce with China for another 90 days, setting the stage for broader negotiations between the world’s two biggest economies.

U.S. President Donald Trump has targeted top economic rival China with a cascade of tariff orders on billions of dollars of imported goods aimed at narrowing a wide trade deficit, bringing back lost manufacturing and crippling the fentanyl trade.