US Treasury Secretary Announces Extension of Trade Truce with China Until January

US Treasury Secretary Scott Bessent announced on Wednesday that Washington and Beijing had agreed to extend their trade truce for two months, after it was scheduled to expire on November 10.

The agreement came after marathon talks between Bessent and Chinese Vice Premier He Lifeng on Sunday in New York and on Wednesday in Washington.

The announcement coincided with the arrival of Chinese President Xi Jinping in the United States for a anticipated summit with his US counterpart, Donald Trump.

In an interview with Fox News, Bessent said, “We agreed today to extend what we call the Busan Agreement, which provides for an economic de-escalation between the two countries that was set to expire on November 10.”

He added, “It will be extended until January 10 to give us more time to see what we can do on the economic front.”

This trade truce, which entered into force last year, was reached following an agreement between Trump and Xi.

The deal included both sides’ agreement to reduce reciprocal tariffs, as well as the US extending certain exemptions from these tariffs.

Bessent also indicated on Wednesday that both sides might consider lowering tariffs on $30 billion worth of non-sensitive goods.

US Trade Envoy Jamieson Greer stated hours after talks with Chinese officials, which he participated in alongside Bessent on Sunday, that both sides were still working on addressing the issue.