The United States and China have agreed to extend their trade truce, moving the expiration date from November 10 to January 10, 2026, US Treasury Secretary Scott Bessent announced on Wednesday.
Bessent told Fox News that the extension was agreed during talks in Washington with Chinese Vice Premier Ho Li-feng. According to the Treasury Secretary, the aim of the extension is to give both sides additional time to negotiate a more comprehensive economic agreement.
The arrangement builds on the October 2025 accord reached in Busan, South Korea, which ended a tariff war in which both countries had imposed additional duties exceeding 100 percent on each other’s goods. The dispute intensified in spring 2025, when the United States increased tariffs on Chinese imports to as much as 145 percent and China responded with counter-tariffs up to 125 percent and export controls on certain strategic materials.
Tensions between the two largest economies extend beyond tariffs. Had the truce lapsed, China intended to broaden export controls on rare earths; those controls, introduced in April 2025, have already affected European companies. Beijing has also protested US export restrictions on semiconductors and AI chips, while Washington accuses China of deliberately withholding shipments of certain raw materials.
The announcement coincided with Chinese President Xi Jinping’s three-day state visit to Washington at the invitation of US President Donald Trump. The two leaders are expected to discuss not only tariff and trade disputes but also security concerns around artificial intelligence and international conflicts.
The primary purpose of the extension is to buy time so negotiators can work toward a broader, structural economic agreement that could address some of the bilateral trade and technology tensions.
