A new list of tariffs would be drawn up on the remaining $257 billion of goods not yet facing tariffs and after a 60-day public comment period, they would go into effect around the Chinese lunar new year holidays in early February.
The White House has said that Trump is scheduled to meet his Chinese counterpart Xi Jinping on the sidelines of the G-20 Summit in Argentina on November 30 and December 1.
The US President said he would like to strike a deal now but that China was not ready. They cautioned that final decisions had not been made.
U.S. stocks edged higher in the first hour of trading on Tuesday.
"I think we will make a great deal with China, and it has to be great because they've drained our country", Trump said.
Fears about the escalating trade war between China and the U.S. has cast a shadow over markets and economic growth worldwide - and China's growth and markets in particular have taken a hard hit. China's Ministry of Commerce didn't respond to a faxed request for comment.
Chinese Foreign Ministry spokesman Lu Kang said China and the United States have all along been in communication about exchanges at all levels, including a possible Xi-Trump meeting in Argentina.
Wang Yong, director of the Centre for International Political Economy at Peking University, said he was suspicious about whether China and the U.S. could reach any breakthrough in their trade talks, partly because Washington's tough stance on trade was increasingly seen by Beijing as part of a broad strategy to contain China's rise.
The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of US goods.
"This is more aggressive than the markets were likely expecting, given that many felt the next step would be an escalation of tariffs to 25 percent, up from 10 percent, on the $250 billion already announced", Mona Mahajan, US investment strategist at Allianz Global Investors, told The Post.
In an interview with Fox News, US President Trump has underscored that he predicts a "full-blown deal" with China on trade, but that Beijing is not ready for it. "You know why? 'Cause we always win". "Not going to happen anymore", Trump asserted.