U.S. Extends Trade Truce with China for Two Months

The U.S. has taken the steps listed below to extend its November 2025 trade truce with China. A Reuters article said China is extending its related measures as well. However, senior U.S. officials recently highlighted the importance of China “fully and immediately implementing its commitments” under the truce, suggesting that the U.S. is dissatisfied with China’s actions to date and could end the truce absent additional progress.

Tariff exclusions. The Office of the U.S. Trade Representative has extended through 11:59 p.m. EDT on Jan. 9, 2027, the exclusion of 178 products from Section 301 tariffs on China, which had been set to expire Nov. 9. Excluded products include (1) those listed in Annex C to this notice and (2) the solar manufacturing equipment listed in Annex B to this notice. These exclusions are available for any products that meet the specified HTSUS numbers and product descriptions, regardless of whether the importer filed an exclusion request. 

Ships and port equipment. USTR has also extended through 11:59 pm EDT on Jan. 9, 2027, the suspension of fees on Chinese vessels and higher tariffs on imports of Chinese port equipment, which had been scheduled to expire Nov. 9. This action affects (1) fees imposed on Chinese-owned or -operated vessels and Chinese-built vessels, and (2) the imposition of 100 percent tariffs on imports of certain ship-to-shore cranes and cargo handling equipment from China.

50 percent rule. The Bureau of Industry and Security has extended through Jan. 10, 2027, the suspension of its interim final rule expanding export restrictions to many subsidiaries of entities on the Entity List and the Military End-User List. These lists impose stringent license requirements for exports of goods subject to the Export Administration Regulations, respectively, (1) to parties involved in activities contrary to U.S. national security or foreign policy interests and (2) when there is an unacceptable risk of use in or diversion to a military end-use. Under the IFR any entity that is at least 50 percent owned by one or more entities on either of these lists would itself automatically be subject to Entity List/MEU List restrictions, although exceptions could be granted on a case-by-case basis.