Wed Nov 05 14:38:09 UTC 2025: Headline: China, U.S. Extend Trade Truce for Another Year

Beijing, November 5, 2025 (The Hindu) – China announced today that it will extend the suspension of additional tariffs on U.S. goods for another year, solidifying an agreement reached between President Xi Jinping and U.S. President Donald Trump during recent talks in South Korea. The announcement follows President Trump’s formalization on Tuesday of a U.S. decision to reduce tariffs on Chinese imports from 20% to 10%. Both measures will take effect on November 10th.

The move signals a continued easing of tensions between the world’s two largest economies, who engaged in a tit-for-tat tariff war earlier this year that saw duties rise to prohibitive levels. The agreement effectively prolongs a delicate truce that has been in place after several rounds of economic negotiations.

According to a statement from China’s Ministry of Finance, the existing 24% and 10% tariffs on U.S. goods will remain suspended for the next year. The country will also cease implementing additional tariff measures imposed on a range of American agricultural products, including chicken, wheat, corn, cotton, soybeans, pork, beef, and dairy. This is particularly significant for U.S. farmers, who saw a key export market disrupted by the trade dispute.

Further signs of improved relations were evident in a meeting between Chinese Vice-Commerce Minister Li Chenggang and representatives from the U.S. farming sector on Tuesday. Li emphasized the importance of agricultural trade links and urged for cooperation between the two nations.

Beyond tariffs, China will also extend suspensions on export control measures targeting U.S. entities, including defense and aerospace firms. Similarly, Beijing has agreed to halt restrictions on the export of rare earths technology, a strategic sector dominated by China. In response, the U.S. will suspend export restrictions on affiliates of blacklisted foreign companies with at least a 50% stake and halt measures targeting China’s shipbuilding industry. Both sides will suspend their respective countermeasures related to shipbuilding, including port fees, for one year.

These developments suggest a move towards greater stability and cooperation in trade relations between the U.S. and China, after a period of significant disruption.

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