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US Treasury Secretary Scott Bessent announced on Wednesday that the United States and China had agreed to extend their existing trade truce by two months until January 10 following his meeting with Chinese Vice Premier He Lifeng in Washington. The extension of what officials call the Busan Agreement provides more time for discussions on whether a larger deal can be reached rather than a series of incremental steps according to a Reuters report. Bessent made the comments during an appearance on Fox News after the talks which occurred just ahead of Chinese President Xi Jinping’s state visit to the United States and a planned summit with President Donald Trump.
The Busan Agreement which was reached in South Korea in 2025 dramatically lowered bilateral tariff rates that had escalated to triple digits during tit-for-tat retaliation over previous tariff hikes a Reuters assessment found. Under the pact China also committed to restoring the flow of rare earth magnets and other critical minerals that it had restricted while agreeing to purchase specific volumes of American agricultural products. The current truce had been set to expire on November 10 before the two-month extension was secured during the Washington meeting.
Bessent told Fox News that the meeting aimed to determine if the two sides could achieve a bigger deal instead of addressing issues through smaller agreements. “We met today to see if we could do a bigger deal as opposed to just a series of smaller things,” Bessent said in the statement carried by multiple outlets. He added that it remained unclear whether a comprehensive agreement could be completed by the new January 10 deadline or if the existing framework would simply be extended.
The Treasury secretary noted that China was fulfilling its commitment to buy 25 million tons of soybeans but was lagging on pledges to purchase $17 billion in other agricultural goods according to his remarks reported by Reuters. Bessent indicated that Washington would continue pressing Beijing to meet all obligations under the current deal in the coming months. The comments reflect ongoing efforts to balance cooperation with enforcement of the agreed terms between the world’s two largest economies.
Trade tensions between the US and China have fluctuated since tariffs were first imposed in 2018 with the Busan Agreement serving as a key de-escalation point last year a Bloomberg summary showed. The pact has helped stabilize aspects of bilateral economic relations including supply chains for critical materials used in technology and manufacturing sectors. Officials from both sides have described the extension as a pragmatic step while they prepare for higher-level discussions during the upcoming leadership summit.
Bessent further stated that he did not know whether a bigger deal could be done or if they would just roll the current deal in response to questions about the January timeline. The announcement comes as both governments seek to manage economic competition without triggering renewed disruptions to global markets. Additional details on potential outcomes from the Trump-Xi meeting have not yet been disclosed by either administration.
