Bessent Says US and China Extend 'Busan Agreement' Trade Truce to January 10, 2027, Ahead of Xi's Washington Visit

Treasury Secretary Scott Bessent announced the US and China agreed to extend the 'Busan Agreement' — the trade détente reached at the October 30, 2025 Busan summit — by roughly two months, from its original November 10, 2026 expiration to January 10, 2027. The framework had reduced the average US tariff rate on Chinese imports from 57% to 47% (with fentanyl-linked punitive tariffs cut from 20% to 10%), suspended retaliatory Chinese tariffs and rare-earth/high-tech export controls for a year, and secured Chinese agricultural purchase commitments. The extension came a day after Bessent and USTR Jamieson Greer held 'successful' pre-summit talks in New York with Chinese Vice Premier He Lifeng on AI, tariffs and critical minerals, and just ahead of Xi Jinping's state visit to Washington for a summit with President Trump. Bessent indicated some Chinese compliance with existing terms still needed improvement, and floated further expansion into agricultural purchases, financial services, consumer goods, energy and medical devices, plus a new bilateral AI-safety notification mechanism.