- The trade truce is formally extended. China will suspend an additional 24% tariff on U.S. goods for another two months into January, while keeping a 10% blanket tariff on U.S. imports, its State Council tariff commission said, Bloomberg reported.
- Port fees are paused too. China’s Transport Ministry extended its suspension of special fees on American ships docking at Chinese ports until Jan. 10, 2027. The truce was originally due to expire Nov. 10.
- Washington wants follow-through. Treasury Secretary Scott Bessent and USTR Jamieson Greer spoke with Vice Premier He Lifeng and urged Beijing to “fully and immediately” implement its Busan commitments, including buying 25 million tons of U.S. soybeans a year for three years.
- Soybeans responded. The most-active Chicago contract rose as much as 0.7% Monday, its biggest gain since Oct. 23, and traded at $12.00 a bushel after slipping below $12 last week on ample supplies and export-demand worries, Bloomberg said.
What Happened?
China will suspend an additional 24% tariff on U.S. goods for another two months, formalizing an extension of the bilateral trade truce to January, while its 10% blanket tariff on U.S. imports remains, Bloomberg reported, citing the Customs Tariff Commission of the State Council. The Transport Ministry also extended its suspension of special fees on U.S. ships at Chinese ports until Jan. 10, 2027. The new timeline follows a September agreement by Presidents Trump and Xi to extend the truce first reached in Busan in October 2025. Separately, Bessent and Greer spoke with He Lifeng on Friday and raised concerns about Beijing’s implementation of its Busan pledges, including purchases of agricultural goods, rare earths and critical minerals. China agreed to buy 25 million tons of U.S. soybeans annually for three years, and the White House said in May that China would buy an additional $17 billion of U.S. farm products each year through 2028.
Why It Matters?
The extension removes a near-term tariff cliff for U.S. exporters and companies with China supply chains ahead of a likely Trump-Xi meeting at the APEC summit in Shenzhen later this month, their third summit this year. But Beijing said it will closely monitor U.S. plans to replace Trump’s emergency tariffs, which the Supreme Court overturned earlier this year, with Section 301 duties and warned it may adjust countermeasures. For farm markets, Joe Davis of Futures International told Bloomberg the talks could pressure China to boost U.S. soybean purchases before the meeting, but warned purchases could stay conditional on tariff cuts, leaving optimism without confirmed new demand.
What’s Next?
The Trump-Xi meeting in Shenzhen is the next major catalyst for tariffs, ag purchases and rare earths. Watch the details of any U.S. Section 301 duties and China’s response, and weekly U.S. export sales data for evidence of fresh Chinese soybean buying.
