US Extends Tariff Pause as Xi Visits Washington

The US government has extended a tariff pause on Chinese imports by two months until January 10, announced by Treasury Secretary Scott Bessent at the start of Xi Jinping's state visit to Washington. The extension prevents China from expanding its export controls on rare earths. Bessent said the "Busan agreement" was extended following meetings with Chinese Vice Premier He Lifeng, providing more time to assess economic options. The trade conflict escalated in spring 2025 with tariffs exceeding 100 percent, before a 90-day suspension was agreed in Geneva in May. Xi arrived in Washington for a three-day visit, with a state banquet expected to include tech leaders like Elon Musk and Jeff Bezos. Xi called for partnership over rivalry, while disputes remain over semiconductor export controls and China's opaque rare earth licensing.