China Extends U.S. Tariff Suspension Ahead of Trump-Xi Meeting

The extension follows a consensus reached by the two leaders in Washington in September, China’s Customs Tariff Commission of the State Council said. It takes effect at 1:01 p.m. local time on Tuesday.

China’s transportation ministry separately said it would extend the suspension of special port fees on American ships until Jan. 10. Authorities will also pause a related industry security investigation against the U.S. for two months, according to a statement.

At their September summit, Beijing and Washington agreed to prolong their tariff ceasefire into early next year. The truce was first reached last October and had been due to expire Nov. 10.

The extension comes after Democrats’ strong win in last week’s U.S. midterm elections prompted speculation that a changed balance of power in Washington could affect the uneasy detente between Trump and Xi. Citi economists expect the trade status quo to hold, saying affordability politics supports reciprocal tariff cuts on non-sensitive goods.

“Democrats’ climate and energy agenda should also benefit China’s green-tech supply chains, if indirectly,” Citi economists Xiangrong Yu and Xinyu Ji wrote. “As U.S. politics grow more complicated, China’s agricultural purchases carry more weight, keeping the tail risk of tariff escalation at bay.”

The economists expect no major trade breakthroughs from the leaders’ third round of talks in Shenzhen. Attention is also turning to a possible trilateral meeting later this month between Trump, Xi and Russian President Vladimir Putin to discuss the wars in Ukraine and Iran.

Next month’s Central Economic Work Conference will be another focus, as Chinese policymakers set the direction for an economy facing sluggish domestic demand. The State Council said last week it would carefully study next year’s economic work and “strengthen the continuity of policies across years.” Goldman Sachs economists said the remarks suggest some funding available this year may be spent early next year to support growth, since the 2026 growth target appears within reach.