US, China Extend Busan Trade Truce to January
The United States and China have agreed to extend their Busan trade agreement until January 10, 2027, keeping a series of tariff and export-control concessions in place as President Donald Trump and Chinese President Xi Jinping prepare for high-level talks in Washington.
US-China Busan Agreement Extended to January
US Treasury Secretary Scott Bessent said Washington and Beijing agreed to extend the arrangement after talks with Chinese Vice Premier He Lifeng.
The existing trade truce had been due to expire on November 10. The two-month extension removes the immediate risk of another sharp escalation in tariffs between the world’s two largest economies.
Bessent said the latest discussions also explored whether the two countries could move beyond individual agreements towards a broader trade settlement.
Rare Earth and Tariff Curbs Remain Paused
The original Busan agreement was reached by Trump and Xi in South Korea in October 2025 after months of escalating trade tensions.
Under that arrangement, Washington reduced fentanyl-related tariffs on Chinese imports, while Beijing suspended additional retaliatory tariffs and delayed tougher export restrictions on rare earth minerals and magnets.
China also agreed to resume large-scale purchases of US agricultural products, including soybeans.
The United States, in turn, paused expanded export-control restrictions that would have affected thousands of Chinese-linked companies and suspended new port fees targeting Chinese ships.
Trump-Xi Summit Could Target Broader Trade Deal
The extension comes as Xi visits Washington for talks with Trump covering trade, artificial intelligence, critical minerals, technology restrictions and wider strategic tensions.
Both governments have signalled interest in preventing another damaging tariff confrontation, although substantial disagreements remain over semiconductor technology, rare earth supplies and market access.
The January deadline now gives negotiators additional time to pursue a broader and potentially longer-lasting US-China trade agreement.
