US, China officially extend trade war truce by 2 months

The two countries said that they would maintain tariff reductions and a pause on other trade actions until Jan. 10, 2027, cementing a pact first announced in September.

The United States and China will extend a pause on trade actions that were meant to go into effect Tuesday by two months as part of an agreement the countries reached in September, according to official documentation from both countries.

The U.S. will maintain reduced tariffs on imports from China as part of the extension. Under the original trade war truce, reached last November, the U.S. agreed to cut tariffs related to fentanyl trafficking on imports from China to 10%, down from 20%, while suspending responsive actions from a Section 301 investigation into China’s maritime and logistics industries, such as fees on China-linked ships calling at U.S. ports. Several trade groups and shipping associations are urging U.S. Trade Representative Jamieson Greer to permanently remove the fees.

Meanwhile, China’s Ministry of Finance said in a statement Monday that a 24% tariff for U.S. goods meant to go into effect Tuesday will remain suspended for another two months. However, China will still charge a 10% additional levy, per the statement. China is also continuing to pause certain export controls, a Ministry of Commerce spokesperson said.

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