China, United States: tariff truce extended until 10 January 2027

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.