US and China extend trade truce: new tariffs postponed until January 2027

The United States and China have agreed to extend a trade truce for another two months. The agreement will run until January 10, 2027, allowing the world’s two largest economies to continue negotiations and avoid a new escalation of the tariff confrontation for the time being.

The extension of the agreement was announced by US Treasury Secretary Scott Bessant after talks between the American and Chinese delegations.

The trade truce was originally scheduled to end on November 10, 2026. It has now been extended for another two months, until January 10.

Reuters also reports that the parties plan to use the additional time to work on a broader trade agreement.

What this means for business

The extension of the truce reduces the risk of a sharp increase in tariffs between the United States and China in the coming months.

For companies that depend on trade and supply chains between the two countries, this means temporarily maintaining more predictable operating conditions.

At the same time, the agreement is designed for only two months, so uncertainty about the further trade policy of Washington and Beijing remains.

What issues remain unresolved

One of the key contradictions between the US and China remains the supply of rare earth metals. They are of critical importance for the production of electronics, cars, defense products and other high-tech goods.

Washington claims problems with the implementation of agreements on stable supplies, while China retains significant influence on the global market for the processing and production of such materials.

Another issue remains trade in agricultural products. According to the material, China has pledged to purchase 25 million tons of American soybeans and additional volumes of other agricultural products in 2026, but the implementation of some agreements is proceeding more slowly than expected in the US.

Thus, the extension of the trade truce does not yet resolve the key economic contradictions between Washington and Beijing, but postpones a possible new escalation of the tariff confrontation until at least January 2027.