US and China agree to extend Busan trade truce until Jan. 10

Washington and Beijing have agreed to extend the Busan Agreement, a trade truce first struck in Busan, South Korea, to Jan. 10, according to Treasury Secretary Scott Bessent. The original pact, signed by Donald Trump and Xi Jinping in October 2025, halted a widening tariff war that had seen duties exceed 100% and involved export controls on rare earths and technology. Under the agreement, the United States lowered certain tariffs and China resumed buying U.S. soybeans while pausing new rare-earth restrictions.

The extension provides a longer window for negotiations on agriculture, non-tariff barriers and a proposed $30 billion mutual tariff cut. Nonetheless, core disagreements over China’s industrial policies and U.S. technology export limits persist, making the truce a fragile pause rather than a final settlement.