President Donald Trump said Tuesday that he had a “very good” phone conversation with Chinese President Xi Jinping and will hold an “extended meeting” with him at the G20 meeting next week in Japan.

Confirmation of the meeting comes after Trump repeatedly threatened to raise tariffs if Xi didn’t sit with him at the June 28-29 summit in Osaka.

U.S. stock indexes extended gains on the news, while Treasuries retreated. The Standard & Poor’s 500 rose 1.2 per cent at 9:56 a.m. in New York.

Talks with Beijing broke off last month after the U.S. accused China’s leaders of reneging on provisions of a tentative trade agreement. Trump raised tariffs on about $200 billion of Chinese imports to 25 per cent, and said he would expand the tariffs to cover another $325 billion in goods -- substantially everything the country exports to the U.S. -- unless Chinese leaders reverse course.