China extended its trade truce with the United States by two months on Monday, pushing a deadline that had been set to expire Tuesday out to January 10, 2027, and keeping a reduced 10% tariff rate on US goods in place rather than letting it snap back to 34%.
China's State Council said an additional 24% tariff on US imports, which had been suspended under the earlier truce, will remain suspended for two more months, leaving the effective rate at 10%. The tariffs commission tied the extension to the "outcomes and consensus" reached at a summit between the two countries' heads of state in Washington earlier this year.
Beijing also extended a package of related measures through January 10: waivers on export controls covering certain critical minerals and related technology, a freeze on restrictions affecting 11 US companies on China's so-called unreliable entities list and 16 more on its export-control list, and a suspension of special port fees levied on US-linked vessels.
US Treasury Secretary Scott Bessent said in September that the truce's terms were expected to hold until January 10, 2027, "to give us more time to see what we can do on the economic front," according to Benzinga's report on the extension. China, for its part, said it would "closely follow subsequent measures taken by the US side" and adjust its own countermeasures as needed.
Markets had been watching the Tuesday deadline closely, since a lapse would have triggered an immediate jump in duties on billions of dollars of trade and renewed the kind of volatility that followed earlier breakdowns in the relationship. With both sides committed through January, attention now shifts to whether negotiators can use the extra two months to reach a longer-term agreement — or whether, as supply-chain analysts have noted, the two countries simply extend the truce again when January arrives.