Such a move would have led to further tariffs on imports from the U.S.to China and vice-versa.
That gives the president 24 hours to fix the damage inflected when the market plunged nearly 800 points on Tuesday after a series of tweets from Trump suggested a trade war with China could resume next year.
The Dow dropped 799 points, or 3.1 percent, amid fears of an economic down turn that could come out of a failed deal to end the trade war with China.
Markets in the Asia-Pacific followed suit on Wednesday with Tokyo and Seoul both down 0.8%, and Australia's benchmark ASX200 index falling 1.35%.
The Ministry of Commerce of China announced that the ultimate goal of the Chinese-American trade negotiations is the abolition of all fees.
At the end of the day, two realities remain: the U.S.is now an energy (oil and gas) producing super power alongside the ranks of Russian Federation and Saudi Arabia, while China, conversely, is the world's largest energy consumer, which gives it less leverage in ongoing trade and even geopolitical negotiations and developments.
According to the White House, the US will still keep in place $200 billion of tariffs on Chinese imports but will not increase those tariffs from 10 percent to 25 percent after the start of the year as originally planned.
Chief White house economist Larry Kudlow said that the meeting between the two leaders lasted for about 2.5 hours and added that the talks were "very good", but not told any details. The statement did not mention Trump or Xi, however the state news agency Xinhua later said the ministry statement was hailing their meeting.
"We are confident in implementation", it said, calling the latest bilateral talks "very successful".
Beijing's commerce ministry said negotiators would "actively push forward negotiations within 90 days in accordance with a clear timetable and roadmap".
"The Chinese side will start with implementing specifics on which there is already consensus, the faster the better". After negotiations, the President of the United States immediately went to Washington.
"We are dealing from great strength, but China likewise has much to gain if and when a deal is completed". Ultimately, I believe, we will be making a deal - either now or into the future.
China has said comparatively little about the Trump-Xi agreement after senior Chinese officials briefed the media following the leaders' meeting, and there have been some differences between United States and Chinese accounts of what the deal entails. China's government has been slow to formulate its response to the summit as senior officials were still out of the country with Xi, Bloomberg News reported.