China, United States: tariff truce extended until 10 January 2027
On 24 September 2026, during a state visit by Xi Jinping to Washington, the first by a Chinese leader to the United States in eleven years, Donald Trump and Xi Jinping extended until 10 January 2027 the trade truce agreed in Busan at the end of October 2025: US tariffs remain lowered and China is delaying its new rare earth export restrictions.
Imechapishwa tarehe · Imesasishwa tarehe
The Busan agreement of 30 October 2025 had brought the US fentanyl-related surtax down from 20 to 10% and kept the reciprocal tariff at 10% for a year, which, according to the White House, brought the combined effective rate applied to Chinese imports down from 57 to 47%. In return, China had suspended for a year its new rare earth export restrictions announced on 9 October 2025, including the extraterritoriality rule targeting any product made outside China containing at least 0.1% Chinese material.
On 24 September 2026, Washington and Beijing extended this arrangement by two months, until 10 January 2027, in exchange for additional purchases of US soybeans. The White House refers to a Chinese commitment of 25 million tonnes a year until 2028; China, for its part, confirms only broader agricultural trade, without a precise figure.
The Chinese licences already in force since April 2025 on seven rare earth elements, including dysprosium, terbium and yttrium, are not lifted by this extension: only the measures of 9 October 2025 remain suspended. US and Chinese technology restrictions remain an unresolved point of friction between the two countries.
This truce is not a final agreement but a renewable pause. It nonetheless maintains, until at least 10 January 2027, a more stable tariff climate for any buyer manufacturing in China, including for markets outside the United States, since part of US demand continues to weigh on factory capacity and ex-works prices.
Kinachobadilika kwa muagizaji
For an importer buying in China, this truce does not remove any European or local customs duty: it only stabilises, until 10 January 2027, the share of US demand weighing on order books and therefore on the FOB prices negotiated with the factory. Sorva follows this matter with its Chinese-speaking team in Guangzhou and checks, factory by factory, whether a product is subject to an export restriction before confirming an order.
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