United States Treasury Secretary Scott Bessent has confirmed that both nations have agreed to extend the "Busan Agreement," postponing the trade truce arrangement originally set to expire on 10 November 2026 to a new deadline of 10 January 2027.
United States Treasury Secretary Scott Bessent has confirmed that both nations have agreed to extend the "Busan Agreement," postponing the trade truce arrangement originally set to expire on 10 November 2026 to a new deadline of 10 January 2027. Bessent made the announcement during a Fox News interview conducted following his meeting with Chinese Vice Premier He Lifeng.
Bessent indicated that the two sides had engaged in discussions regarding the prospects of reaching a broader economic and trade agreement, ultimately resolving to extend the existing arrangement in the interim, thereby creating additional time for subsequent negotiations to advance.
The "Busan Agreement" was concluded following a bilateral summit between the leaders of China and the United States held in Busan, South Korea, in late October 2025, and was designed to ease trade tensions that had escalated in the preceding period. Under the terms of the arrangement announced in 2025, the United States reduced tariffs on Chinese goods linked to the fentanyl issue from 20% to 10% and suspended the imposition of elevated "reciprocal tariffs" on China through 10 November 2026. The arrangement also encompassed the maritime and logistics sector, with the United States agreeing to suspend Section 301-related measures targeting Chinese vessels for a period of one year, spanning 11 November 2025 to 9 November 2026.
Bessent further disclosed that the two countries are actively exploring, through the "Trade Commission" mechanism, the reduction of tariffs on approximately USD 30 billion worth of non-sensitive goods.
Freight forwarders and cargo owners are advised to monitor the latest tariff policy developments closely when planning shipments - consulting current vessel schedules and freight rate information in advance, and establishing well-considered cargo transport plans, to effectively navigate the operational implications of any future policy adjustments.
