The US and China have agreed to extend their trade truce by two months to 10 January 2027, allowing additional time to negotiate a broader agreement on tariffs, agricultural purchases, critical minerals, and financial services.
The US and China agreed, on 23 September 2026, to extend their trade truce by two months, pushing the expiration date to 10 January 2027.
The original agreement, reached in Busan, South Korea, in May 2026, was set to expire on 10 November 2026.
US Treasury Secretary Scott Bessent announced the extension after meeting with Chinese Vice Premier He Lifeng at the World Bank headquarters in Washington. The two officials met to prepare for a summit between President Donald Trump and Chinese President Xi Jinping scheduled for today, 24 September 2026.
Talks aim for comprehensive deal
Bessent told reporters that the two-month extension provides time to negotiate a more expansive trade agreement. Bessent and Lifeng conducted a second round of talks in four days, following a 12-hour meeting on 22 September in New York. Wednesday’s discussion lasted approximately 90 minutes.
Beijing raised the prospect of a broader trade deal during the earlier talks, though specific details remain undisclosed. Bessent stated that Washington sought to determine what both sides could accomplish “on the economic front” before the January deadline.
China’s performance on existing commitments
China is meeting its obligation to purchase 25 million tons of soybeans but has lagged on commitments to buy USD 17 billion in other agricultural goods. US officials also reported that China’s delivery of rare earth magnets and critical minerals remains below agreed levels.
The Trump administration aims to remove tariffs on USD 30 billion in non-critical goods, expand financial services agreements, and increase agricultural purchases during Thursday’s summit.
The summit marks the second of potentially four Trump-Xi meetings planned for 2026, with additional sessions scheduled in Shenzhen and Miami.
Earlier, the US and China have been pursuing a more pragmatic approach to trade negotiations, with US Trade Representative Jamieson Greer playing a key role in discussions over potential tariff reductions covering approximately USD 30 billion in goods. Washington has also shifted away from seeking fundamental changes to China’s state-directed economic model, placing greater emphasis on practical areas of trade cooperation.
