US–China Trade Truce Extended to 10 January 2027 — $30 Billion Reciprocal Tariff Cuts, New Trade Council

On 28 September China's Commerce Ministry released the results of the 8th US–China economic and trade consultations, held 20–23 September in New York and Washington. The two sides agreed to extend the suspension of certain tariff and non-tariff measures, arranged in Kuala Lumpur in October 2025, from 10 November 2026 to 10 January 2027. The package also includes reciprocal tariff cuts on roughly $30 billion of goods each, new trade and investment councils and an agriculture working group, and an AI dialogue channel. Our 26 September summit report noted that specifics had not been disclosed; this announcement fills in the detail.

By the editorial desk

What is confirmed: a two-month truce extension

According to the explainer by a Commerce Ministry official carried by Xinhua (28 September), the two sides had suspended certain tariff and non-tariff measures until 10 November 2026 under the joint arrangement reached in Kuala Lumpur in October 2025, and agreed in this round to extend it to 10 January 2027. News1 (28 September) also reported that the ministry announced the truce would run to January next year. US Treasury Secretary Scott Bessent had earlier said on Fox News on 23 September that the deal was extended, with a deadline of 10 January (Hankook Ilbo, 24 September).

Tariff cuts and new bodies

The announcement says each side will cut tariffs on roughly $30 billion of the other's goods, with about 90% of these lowered to MFN rates. China's plan to import more US coal each year in 2027–2028 is part of the framework. Institutionally, a US–China Trade Council, an Investment Council and an agriculture working group will be set up; the working group will address non-tariff barriers and market access and hold its first meeting this year. On AI, a dialogue channel led by Vice Premier He Lifeng and Secretary Bessent will be created, with the next dialogue due by end-November. The sides also agreed to review applications by US financial institutions to operate in China under the law and to hold talks on direct flights.

What Korean businesses in China should note (editorial analysis)

First, the near-term risk of a tariff shock has eased, but the truce is a stay running only to 10 January 2027. The APEC summit in Shenzhen (November) and the G20 in Miami (December) offer further chances for signals before year-end. Second, reports of the published items do not confirm anything on semiconductors or rare earths; Global Economic (27 September) noted that negotiations over critical minerals and advanced-chip controls continue behind the tariff pause. Third, how the expanded US farm and coal imports and the tariff-cut lists will affect Korean exports to China or local sourcing is not yet clear from reports, so companies should check individually whether their products fall within the cuts.

Our 26 September report (US–China Summit: 3-Hour 22-Minute White House Meeting) said no substantive agreement, such as a new AI channel, had been announced; this Commerce Ministry release supplements that.

※ This article was auto-drafted from Xinhua, News1 and Hankook Ilbo reports dated 24–28 September 2026. Editorial review is required before publication.