U.S. and China Extend Tariff
Truce to 10 January 2027
Treasury
Secretary Scott Bessent said on 23 September, 2026 that the United States and
China have agreed to extend a tariff truce that was set to expire in November.
The
truce is being extended through January 10, he said in an interview on Fox News
following a meeting with Chinese Vice Premier He Lifeng.
“We
will extend what we call the ‘Busan Agreement”– the economic détente between
the two countries that was scheduled to end on Novmber
10 – that is going to be extended until January 10,” he said.
Chinese
President Xi arrived in Washington yesterday evening.
The
Treasury Secretary said that the two sides could reach a larger deal by January
or simply “just roll the current deal” again.
“There
are some deliverables that have not been perfect on the Chinese side, so we
also want to see, now that we've sat down and told them our expectations, if
over the coming months they can be more fulsome in enacting the agreement,” he
said.
Further
announcement should be expected over the next two days during Mr. Xi’s visit,
including Beijing agreeing to purchase more US agricultural goods, according to
Mr. Bessent.
Can
China Live Up to Commitments
Lawmakers
from both sides of the political aisle yesterday questioned whether China can
be counted on to live up to any commitments it makes.
Senate
Democratic Leader Chuck Schumer (NY) told reporters yesterday President Trump
should hold firm on preventing the Chinese from buying US advance AI chips and
manufacturing equipment.
“President
Trump must draw a hard line. Do not weaken America's export controls,” he said.
“Do not give China greater access to the advanced chips and chip-making
equipment it needs to close the gap with the United States. Why? Because Trump
is currently giving away our greatest advantage in the AI race by greenlighting
the sale of advanced AI chips to China.”
Separately,
House Select Committee on China Chairman John Moolenaar (R-Mich) warned in a
statement that the Administration should not trust Beijing. “The real danger is
trusting the CCP,” he said. “The American AI stack remains far stronger than
China’s and we must continue to lead. The best path forward for safety and
winning the AI race is implementing strict export controls on chips and
chipmaking equipment to continue slowing China’s progress while we ensure the
US develops dominant AI capabilities that uphold the foundational values of
life and liberty our country was founded upon.”