Although White House has not revealed any plans, it is expected that the two presidents; President Trump and his Chinese counterpart, President Jinping, will be expected to meet at the end of February in anticipation of the final trade arrangements. Speaking to the reporters at the White House, Trump added that his meeting with Xi would take place soon but not before the trade deal deadline.
Time is running out for the U.S. and China to reach an agreement before the deadline the Trump administration has set to more than double tariffs on US$200 billion (S$271 billion) of Chinese goods.
US President Donald Trump (R) and China's President Xi Jinping (L) along with members of their delegations, hold a dinner meeting at the end of the G20 Leaders' Summit in Buenos Aires, on December 01, 2018.
The S&P 500 Index market worth dropped by 0.93 percent, the biggest drop in 2 weeks.
Last week, Trump and Chinese officials had expressed optimism during the second round of talks in Washington about chances of striking a bargain but they released few details about progress in their talks.
The US stock market has fallen in response to the news, with hopes of a swift trade pact between the two leaders quickly dampened.
Treasury bond yields dropped, while the benchmark 10-year yield slid 4 basis points to a low of 2.66%.
ENERGY: U.S. crude oil fell 25 cents to $52.39 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, rose 13 cents to $61.76 per barrel.
Mr Lighthizer told reporters last week that it was not certain a deal could be reached.
One senior administration official said the decision not to go ahead with a meeting between Xi and Trump before March 1 should not be read as a sign the talks were breaking down. Kudlow also indicated, however, that President Donald Trump is "optimistic with respect to a potential trade deal".
"The likely outcome is that the tariffs remain at the current 10 percent rate", CNBC reported Thursday, citing administration officials and sources briefed by the White House. Washington accuses China of stealing US intellectual property and forcing American businesses to share their technology with Chinese companies.
Lighthizer said last week that tariffs had not been a subject of the talks.
Chinese officials have said their policies do not coerce technology transfers. "They're making a mistake because they need to be prepared", he said.