US and China agree to extend trade truce by two months
Treasury Secretary Scott Bessent announced that Washington and Beijing have agreed to extend their trade truce for two months, setting a new deadline for early next year. The announcement came shortly after Chinese leader Xi Jinping arrived in Washington for a two-day visit.
US Treasury Secretary Scott Bessent said Wednesday evening that the United States and China have agreed to extend their ongoing trade truce. The new extension runs for two months, meaning both sides will face another negotiating deadline early next year.
The announcement came shortly after Chinese leader Xi Jinping arrived in Washington for two days of meetings, a visit seen as a significant moment in the two countries' evolving trade relationship.
Background on the arrangement
The current truce builds on an initial arrangement previously reached by President Donald Trump and Xi Jinping. That earlier deal was intended as a temporary measure to ease tensions between the two economies while broader trade talks continued.
The two-month extension suggests both sides remain willing to keep talking, even though a longer-term resolution has not yet been reached. The new deadline, arriving early next year, will create another pressure point in the ongoing negotiations.
Details about the specific terms of the extension and its effects on particular industries have not yet been made public. Relations between the two countries have in recent years followed a pattern of alternating tension and easing, with trade truces repeatedly extended to avoid the imposition of new tariffs.
