US and Chinese officials are working on a deal to postpone a round of tariffs set to hit Chinese imports in five days, according to a media report on Tuesday.
Delaying the new duties, which cover about $160 billion in imports, including consumer favorites like mobile phones, could help reassure markets the two sides are making progress towards ending their trade war.
Officials on both sides say they now expect to continue talking past December 15, when the tariffs are due to kick in, according to The Wall Street Journal.
The report helped move Wall Street futures into positive territory.
US officials have reiterated that any final decision by the American camp belongs to President Donald Trump.
For two months, the two sides have struggled to finalize a partial deal that Trump announced in October.
Should the December 15 tariffs take effect, virtually all the merchandise the United States imports annually from China will be covered by punitive tariffs.