US and Chinese officials have reached a framework agreement, averting a potentially ruinous 157% tariff on Chinese goods while paving the way for a potential trade deal to be discussed between President Donald Trump and Chinese leader Xi Jinping later this week.

President Trump told reporters as he flew into Japan that he expects to have a trade agreement with China finalized by the end of his tour of Asia.

Trump met with new Japanese prime minister Sanae Takaichi, who heralded the start of a “new golden age” in the bilateral relationship following tricky trade talks.

The Treasury secretary said a ‘very successful framework’ was laid for a coming Trump-Xi meeting and signaled a possible extension of the trade truce.