US and China detail trade truce and tariff plan

China said on Monday that its trade truce with the United States will run until 10 January 2027, extending the period in which the two largest economies are trying to manage their disputes without a fresh escalation. Its commerce ministry also set out a plan for reciprocal tariff reductions affecting roughly $30 billion in goods on each side. The reductions remain subject to domestic procedures and should not be treated as already in force.

The ministry described further work on agricultural market access and a channel through which the countries could discuss artificial intelligence incidents. Those issues remain separate from the immediate extension of the truce. The proposed tariff cuts, in particular, depend on formal steps by both governments before importers can rely on them.

The announcement offers a measure of predictability to businesses exposed to US-China trade, but it leaves the scope and timing of implementation to the next round of decisions. The distinction between a political plan and a tariff change already in effect matters for companies making purchasing and pricing decisions now.