President Trump has said he would intervene in the case of Huawei’s chief financial officer, who is wanted by the US Justice Department, if it could help close a trade deal with China.
Meng Wanzhou has been granted bail by a Canadian court.
She was arrested in Canada on 1 December at the request of the US.
The 46-year-old is accused of misleading multinational banks about Iran-linked transactions, putting the banks at risk of violating US sanctions.
Beijing has expressed outrage over Meng’s detention in Vancouver, ratcheting up tensions in the US-China trade dispute.
After three days of hearings, a British Colombia justice granted bail of 10m Canadian dollars (US$7.5m, £5.9m) to Meng, but required her to wear an ankle bracelet, surrender her passports and to stay inside her Vancouver home from 11pm to 6am.
The decision was met with applause in the packed courtroom, where members of Vancouver’s Chinese community had turned out to show support for Meng.
But in interview with Reuters, President Trump said he would intervene in the Justice Department’s case against Meng if it would be in the interest of US national security or help close a trade deal with China.
He said he step in if it would be good for what will “certainly be the largest trade deal ever made”.
He added that talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal.
Hours before the bail hearing in Vancouver, China detained a former Canadian diplomat in Beijing in apparent retaliation to Meng’s arrest.
According to a spokesman for International Crisis Group, Michael Kovrig was taken into custody Monday night during one of his regular visits to Beijing.
He previously worked as a diplomat in Beijing, Hong Kong and the United Nations.
“We’re deeply concerned. A Canadian is obviously in difficulty in China,” said Canadian Public Safety Minister Ralph Goodale.
“We are sparing no effort to do everything we possibly can to look after his safety.”
Canada had been preparing for retaliation over Meng’s arrest following a warning from China.
The Canadian province of British Columbia cancelled a trade mission to China amid fears China could detain Canadians to put pressure on Ottawa over Meng’s detention.
Meng, who is the daughter of Huawei’s founder Ren Zhengfei, is alleged to have used Hong Kong company Skycom to access the Iranian market in deals that violated US sanctions.
She allegedly assured US banks that Huawei and Skycom were different companies but prosecutors say they were one and the same.
The list of strict conditions of her release pending the outcome of the extradition case is lengthy, and includes the surrender of her passports and electronic monitoring.
She was expected to be released shortly and will be allowed to stay at a luxury home owned by her husband Liu Xiaozong in Vancouver.
The extradition process is scheduled to start on 6 February and could take months, even years, if appeals are made in the case.