US-China Trade War Hits Pause Again as Truce Is Extended to January
Synopsis
The US-China trade war has paused again as Washington and Beijing extend their trade truce and continue negotiations over tariffs and trade.
The US-China trade war has reached a new temporary truce, as the two nations agreed to keep their trade truce going through the January 10 date.
The extension was announced by US Treasury Secretary Scott Bessent following his meeting with Chinese Vice Premier He Lifeng on September 23. The current pact, the Busan Agreement, is due to expire on November 10.
Washington and Beijing Extend Trade Arrangement
The extension was given to provide time for both sides to reach a resolution on several outstanding trade issues between the two governments through the next deadline.
The talks, said Bessent, have included the idea of an expanded agreement rather than resolving individual differences on a case-by-case basis. The talks cover tariffs, agricultural purchases, financial services and artificial intelligence and critical minerals.
The extension comes on the heels of planned talks between US President Donald Trump and China's President Xi Jinping. Both governments have been discussing steps towards relaxing some of the trade restrictions that were in place as part of their broader trade feud.
There are also existing commitments made by the Chinese for rare-earth magnets and other critical minerals. These materials are relevant for several manufacturing industry as they are utilized in products like electronics, vehicles and industrial equipment.
Soybeans and Critical Minerals Remain Under Discussion
Another sticking point in the talks is agricultural trade. China was fulfilling its 25 million-tonne commitment to buy U.S. soybeans, while another agreement for $17 billion of other U.S. agricultural products was lagging, Bessent said.
The US has been persistently pushing China on the acquisition of rare-earth materials as well. Deliveries were not on pace to meet U.S. expectations, so the issue was part of the broader negotiations, Bessent said.
The two governments also have talks regarding potential tariff cuts on roughly $30 billion worth of non-sensitive products.
US-China Trade Remains Significant
According to U.S. government statistics, goods trade in 2025 totaled $414.6 billion, with $106 billion worth of exports to China and $308.7 billion worth of goods imports from China.
In total, goods trade was $202.7 billion more in deficit with China in the year. The U.S. exports to China were approximately $65.2 billion compared to imports of approximately $156.4 billion through July 2026.
The new extension extends the temporary halt of the U.S.-China trade war through Jan. 10 as tariff talks and discussions of supplies of critical minerals and agriculture continue.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
