China Pushes to Extend US Trade Truce — Effective Tariff Rate Near 30% After IEEPA Ruling Forces Restructuring

China indicated on May 20, 2026 that it would accept the tariff level agreed at the October 2025 Kuala Lumpur negotiations and pushed to extend the trade truce under a restructured legal framework. The US Supreme Court's February 20, 2026 ruling that IEEPA authority cannot be used to impose tariffs forced the Trump administration to restructure its tariff regime toward Section 122, 301, and 232 authorities. The effective tariff rate on Chinese goods remains near 30%. Bloomberg reported China was seeking commitment to a tariff ceiling from Washington, while SCMP noted China had accepted the tariff levels agreed in Kuala Lumpur as a baseline. The trade stabilization effort came alongside the Trump-Xi summit (May 14-17) and contrasted with ongoing US export controls on advanced semiconductors. China's April 2026 exports reached a record $359.44 billion (+14.1% year-on-year), suggesting Chinese exporters were adjusting to the tariff environment through diversification.