Forex
Home›Forex›Major Pairs›US and China extend Busan trade truce to Jan. 10
US and China extend Busan trade truce to Jan. 10
The rollover extends tariff peace, with the truce originally due to expire in November and expected to support the yuan and other China-sensitive currencies.
The United States and China agreed to extend their Busan trade truce until January 10, Treasury Secretary Scott Bessent said after talks with Chinese Vice Premier He Lifeng, as President Xi Jinping arrived for a White House summit with President Donald Trump.
The extension removes a near-term cliff risk for Asian assets, and traders will now focus on whether the summit yields a broader trade deal or only another rollover of the current arrangement, according to Forexlive.
Bessent said the two sides also discussed a larger agreement, while the meantime reflects a decision to roll over the Busan terms rather than end them early. Washington and Beijing are expected to address the issues at the White House on Thursday.
Under the Busan arrangement, the US cut a fentanyl-related tariff on Chinese goods from 20% to 10%, while China agreed to issue general licenses for exports of rare earths and other strategic materials, and to suspend certain export controls announced in October. Forexlive also noted the truce has a short, two-month window, meaning tariff risk returns early in the new year.