The United States and China are in negotiations to extend the trade truce reached in October 2025, which suspended or reduced tariffs on goods between the two countries and is set to expire in November 2026 [1, 2, 3, 4]. Treasury Secretary Scott Bessent said the Trump administration is "not in a rush to extend it," adding, "Things are stable" and there is time for talks later this year [1]. China has expressed willingness to continue negotiations to maintain the one-year tariff truce first agreed in Kuala Lumpur [5, 6, 7].
The current trade truce limits US tariffs on Chinese goods to roughly 10-20%, following a US Supreme Court ruling in early 2026 that struck down Trump's global emergency tariffs and led to lower tariffs for China [1, 3, 4]. Bessent stated China would accept restoration of prior US tariff rates through new Section 301 duties, as long as tariffs do not increase beyond truce levels [3]. A Chinese Ministry of Commerce spokesperson said China hopes the US will honor commitments to keep tariff levels from exceeding the Kuala Lumpur agreement [8].
The two sides have agreed in principle to negotiate reciprocal tariff cuts on at least $30 billion worth of goods each, with Bessent saying, "My feeling is the first number will be 30 billion vs 30 billion then we'll try to fill up that amount" [4]. Dr. Zhiwei Zhang noted such cuts would affect about 10% of US imports from China, calling it a "positive step in the right direction," though not large enough to impact GDP forecasts significantly [7].
Trade talks also cover investment and artificial intelligence governance mechanisms, focusing on non-national security investments and AI export controls [4]. China has fulfilled its commitments on critical minerals under the truce "satisfactorily, but not excellent," according to Bessent, who added that further discussions are ongoing [3]. China will also restore registration for US beef exporters lost during 2025 tensions [6].
A key outcome from the recent Trump-Xi summit was China's pledge to purchase 200 Boeing aircraft, marking Boeing's first major Chinese order in nearly a decade, with potential to increase to 750 planes according to Trump [7, 9]. The US may supply plane engines and guarantees as part of the deal [2, 4]. China also committed to roughly $17 billion in annual US agricultural purchases [2, 3, 4].
Chinese President Xi Jinping is expected to visit Washington in September 2026 to meet with President Trump, with possible additional Trump-Xi meetings planned for the APEC summit in China in November and the G20 summit in Florida in December [1, 2, 4]. Negotiations to finalize the trade truce extension and related agreements will continue at the bilateral level ahead of the truce's November expiration [1, 3].
