US Treasury: China Tariff Truce Holding Strong

By Staff, Agencies

US Treasury Secretary Scott Bessent expressed confidence on Wednesday in the current trade arrangement with Beijing, noting that both sides had agreed to prolong their tariff ceasefire.

"China is right now the biggest revenue line in the tariff income," Bessent said. "We have had very good talks with China, I imagine we will be seeing them again before November," he continued, adding, "I think right now the status quo is working pretty well."

Washington and Beijing extended their tariff truce by 90 days, delaying major new duties. First agreed in May and reaffirmed in July talks, the pause now lasts until November after US negotiators advised an extension.

Trade talks continue amid efforts to end the Ukraine war. The US has urged China to reduce Russian oil purchases, but Trump said Friday no new tariffs on China are planned for now due to ongoing negotiations.

Meanwhile, US President Donald Trump has ramped up diplomacy, meeting his Russian counterpart Vladimir Putin in Alaska on Friday, then hosting Zelensky and NATO leaders Monday. A Zelensky-Putin meeting is expected before a three-way summit with Trump.

Asked about reports naming Budapest as a possible location for the trilateral meeting, Bessent responded that it "could be" the case, while stressing that the bilateral session must take place first.

While Bessent highlighted US tariff gains, analysts warn China holds key leverage through its control of rare earth minerals vital to tech and defense.

China remains the top supplier of vital tech goods like batteries and laptops, which US firms struggle to source elsewhere. Despite tariffs, China’s economy has held strong by diversifying markets and cutting reliance on the US.

The US has gained tariff revenue and used the truce for diplomatic pressure, but experts say China’s rare earth dominance and US debt holdings give it a longer-term edge.