US Extends China Trade Truce Proposal Amid Persistent Disagreements

The US has proposed extending its trade truce with China by three to six months as their current agreement expires on November 10. The proposal was made during preparatory talks held on September 20, but no immediate agreement was reached.

Negotiators from both sides acknowledged the persistent divisions between Washington and Beijing, which have been evident in areas such as rare-earth minerals, agricultural purchases, and technology competition.

The current truce architecture, born out of the 2025 Busan deal, has given both sides breathing room to negotiate on tariffs, agricultural trade, and mineral exports without the threat of immediate retaliation. However, China's compliance with previous commitments on rare-earth exports has been assessed at roughly two-thirds of what was agreed upon.

The proposed reciprocal tariff reduction framework covering approximately $30 billion in goods per side offers a potential sweetener that could help both governments sell an extension domestically.