U.S. and China extend trade truce until January

U.S. Treasury Secretary Scott Bessent said on Wednesday that the Estados Unidos and China had agreed to extend the trade truce for two months that would expire on November 10. The agreement remains in force until January. The statement was given to Fox News hours after its second meeting, in four days, with Chinese Deputy Prime Minister He Lifeng.

According to Bessent, the measure will give the two countries more time to negotiate a potentially broader agreement. The meetings served to prepare for the summit between US President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday. Xi landed in the United States on Wednesday.

Extension aims to extend economic negotiations

He said the two-month extension of the trade truce agreed in May in Busan, South Korea, would give the two countries “more time to see what we can do in the economic area.” The original truce was signed to contain the tariff escalation between the two largest economies in the world. Now, the additional deadline allows technical teams to deepen discussions on sensitive topics such as agricultural purchases and financial services.

Earlier, Bessent told reporters that Beijing had raised the possibility of a broader U.S.-China trade deal during 12 hours of talks held on Sunday, but gave no details on the scope of the eventual pact. According to the US Treasury, Wednesday’s meeting lasted about 90 minutes. The intensity of the contacts reflects the urgency of both sides to avoid further friction before the presidential meeting.

Trump-Xi summit could bring announcements

The summit on Thursday, the second of up to four meetings scheduled between Trump and Xi this year, could bring announcements about the two countries’ goal of eliminating tariffs on $30 billion in non-essential products, in addition to issues related to financial services and agricultural purchases, Bessent said. The expectation is that leaders will signal concrete advances to calm global markets.

Bessent said he met with He at World Bank headquarters in Washington to resolve some “pending issues” ahead of the Trump-Xi summit. According to him, the Trump administration seeks a strategic relationship based on “reciprocity and justice.” The choice of the location, a multilateral body, reinforces the tone of institutional cooperation.

Chinese commitments under evaluation

Asked about the possibility of a deal being closed by Jan. 10, Bessent told Fox News that this was not yet clear. He added that Washington also pressures China to more fully meet the commitments made in the current agreement in the coming months. He said Beijing was meeting its requirement to buy 25 million tonnes of soybeans but was still below its target of buying $17 billion in other agricultural products.

U.S. officials said last week that Chinese rare earth deliveries are also below expected. These minerals are essential for high-tech industries such as semiconductors and electric vehicles. The gap in volumes ignites an alert in Washington, which closely monitors compliance with trade clauses.

Global impact and next steps

The extension of the truce reduces for now the risk of a new round of punitive tariffs between the US and China. For international trade, maintaining the dialogue is seen as a positive sign, even though there are still uncertainties about concluding a definitive agreement. The meeting on Thursday between Trump and Xi will be decisive in setting the tone of negotiations over the next two months.

The Boca no Trombone portal will continue to follow the developments of the summit and its reflections for the Brazilian economy, especially for the agribusiness of Paraná, which depends on soy exports and may be affected by changes in Chinese purchases. Continue browsing the site for more updates on the topic.

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