US and China Extend Trade Truce Until January 2027 as Trump Meets Xi

The United States and China agreed to extend their trade truce into January, Treasury Secretary Scott Bessent said on September 24 . Reuters framed the deal as an early win as President Donald Trump and Chinese President Xi Jinping sat down for talks, with the truce now running to January 2027 . NBC News and CNBC reported the new end date as January 10, a roughly two-month extension of the "Busan agreement".

Bessent announced the extension after meeting Chinese Vice Premier He Lifeng in Washington ahead of the summit, and Xi's state visit runs through Friday, according to CNBC. Bessent said the U.S. hopes to negotiate a more comprehensive economic package by January but left open the possibility of "rolling" the existing deal again if more time is needed. He also said "there are some deliverables that have not been perfect on the Chinese side," signaling that Washington wants fuller implementation of what China has already committed to.

For markets, the extension removes a near-term cliff: without it, the truce's pause on escalating tariff and trade measures would have lapsed within weeks, putting tariff headline risk back in play for China-exposed exporters, retailers and chipmakers. The short length of the extension cuts the other way, since it sets up another deadline within weeks of year-end rather than a durable settlement.

What to watch: any joint statement from the Trump-Xi talks on the unresolved trade items, Chinese Commerce Ministry confirmation of the January 10 date, and whether the January deadline produces the broader package Bessent described or another roll-forward.