The United States and China have agreed to extend their trade truce through Jan. 10, Treasury Secretary Scott Bessent announced Wednesday.
The extension provides a short-term reprieve from economic tensions as Chinese President Xi Jinping arrived in Washington earlier Wednesday for a high-profile state visit hosted by President Donald Trump.
Bessent announced the extension on Fox News after meeting with Chinese Vice Premier He Lifeng, his second meeting with China’s top economic official in four days.
“We met today to see if we could do a bigger deal as opposed to just a series of smaller things,” Bessent said. “We have agreed today that we will extend what we call the Busan Agreement.”
The agreement extends a nearly yearlong trade truce reached by Trump and Xi in Busan, South Korea, last October that de-escalated a tariff fight between the world’s two largest economies. Under that agreement, Washington lowered some tariffs on Chinese goods, while Beijing agreed to pause new restrictions on rare earth minerals, resume purchases of U.S. soybeans and take steps to curb the flow of fentanyl precursor chemicals.
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Ebony Davis is a breaking news reporter for MS NOW based in Washington, D.C. She previously worked at CNN as a campaign reporter covering elections and politics.
