U.S., China eye tariff truce

Scott Bessent’s latest line is that Washington is “not in a rush” to extend the U.S.-China tariff and critical-minerals truce that runs out in November. He said that on May 19 in Paris, arguing there is still time for both sides to revisit the pact in meetings later this year. (usnews.com) That matters because Beijing is signaling it still wants the pause to continue. Bloomberg reported on May 20 that China is prepared to keep negotiating an extension of the truce reached last October and would even tolerate some increase in U.S. tariffs, up to a level previously agreed, rather than let talks collapse outright. (bloomberg.com) So this is not a full trade settlement. It is a narrower effort to stop the relationship from worsening again before November, while preserving leverage on both sides. Reuters’ reporting on Bessent described the arrangement as covering tariffs and critical minerals, and said the administration believes it can address renewal later in 2026. (usnews.com) China’s side of the message is also transactional. Reuters reported on May 20 that Beijing said it would buy 200 Boeing jets and seek an extension of the trade truce after the Trump-Xi summit, presenting the aircraft order as part of a broader package aimed at stabilizing ties. (money.usnews.com) The Boeing piece is politically useful because it gives both governments something concrete to point to. For Washington, it is a large-ticket U.S. export tied to jobs and manufacturing. For Beijing, it shows it can offer commercial concessions without giving up its broader position on tariffs. Reuters said China did not frame the aircraft purchase as a final resolution of trade disputes; it paired the order with a request to keep the truce alive beyond November. (money.usnews.com) Bessent’s “not in a rush” formulation is also a signal in itself. It suggests the Trump administration thinks the current balance is manageable for now and does not want to look eager for an extension. Reuters reported that Bessent said there was still time to renew the arrangement in later meetings, rather than immediately. (usnews.com) China, by contrast, appears to be showing flexibility on the tariff ceiling in order to protect the larger negotiating channel. Bloomberg’s account said Beijing would accept some increase in U.S. tariffs to a level agreed last year, which points to bargaining over the size of the pain rather than over whether tariffs disappear altogether. (bloomberg.com) The next marker is November 2026, when the current truce is due to expire unless negotiators extend it. Before then, both sides have said they expect more talks later this year, with tariffs, critical minerals and implementation of the post-summit package likely to stay at the center of the discussion. (usnews.com)