China Extends 24% Tariff Suspension on U.S. Goods Through January

By Grace Kim

China will keep its 24% additional tariff on U.S. imports suspended for two more months, through January, the Customs Tariff Commission of the State Council announced on the 9th. The extension takes effect at 1:01 p.m. China time on the 10th. The existing 10% additional tariff stays in place.

Beijing said the move implements the agreement reached at the Washington summit between U.S. President Donald Trump and Chinese President Xi Jinping. U.S. Treasury Secretary Scott Bessent said earlier that after meeting Chinese Vice Premier He Lifeng in Washington on Sept. 23, both sides agreed to extend the trade truce — set to expire on the 10th of this month — until Jan. 10 next year. That deal builds on a one-year suspension of retaliatory measures agreed after the Busan summit in October last year, which ran through Nov. 10.

What else gets pushed to January?

Plenty. China's Ministry of Commerce is postponing until Jan. 10 tightened export controls on a list of strategic materials:

• superhard materials such as synthetic diamonds;
• certain rare-earth equipment and raw materials;
• heavy rare-earth metals and alloys;
• lithium and synthetic graphite materials used in battery manufacturing;
• rare-earth-related technologies.

Sanctions on five U.S. subsidiaries of Hanwha Ocean (KRX: 042660) are also suspended for two additional months. The Ministry of Commerce had barred the five units from dealing with Chinese companies, citing their cooperation with a U.S. Trade Representative investigation under Section 301 of the Trade Act targeting China's shipping, logistics and shipbuilding industries. The sanctioned entities cover Hanwha Philly Shipyard in Philadelphia, Pennsylvania — a symbol of the MASGA (Make American Shipbuilding Great Again) project that President Lee Jae-myung visited in August last year — plus Hanwha Shipping, Hanwha Ocean USA International, Hanwha Shipping Holdings and HS USA Holdings.

Retaliatory measures against U.S. military-linked firms are suspended as well. The package covers 16 companies barred from exporting dual-use goods — items serving both military and civilian purposes — including defense and robotics systems maker HiPoint Aerotechnology and logistics company Universal Logistics Holdings. It also covers 11 companies on China's "unreliable entities" list over arms sales to Taiwan, among them Skydio, the largest U.S. drone manufacturer.

What does this change for exporters?

For U.S. shippers into China, the tariff bill stays at the 10% surcharge rather than 34% until mid-January, and buyers of Chinese rare earths, lithium and graphite keep their supply lines open. That breathing room runs out Jan. 10 unless both sides extend again.

One legal wrinkle sits underneath. The Customs Tariff Commission said it is "taking note of the U.S. statement that it plans to replace tariffs based on the International Emergency Economic Powers Act, which lost effect through a court ruling, with tariffs under Section 301 of the Trade Act," adding that it will "closely monitor follow-up U.S. actions and adjust related retaliatory tariff measures at an appropriate time depending on the circumstances."

In other words, Beijing reserves the right to recalibrate if Washington restructures its tariff legal basis.

The diplomacy behind the truce

He, the vice premier, held a video call on the 6th with Bessent and U.S. Trade Representative Jamieson Greer to discuss major trade issues between the two countries. China conveyed strong concerns over recent U.S. trade and economic restrictions. The U.S. side called on China to faithfully implement existing trade agreements.

The gap between those two positions — Beijing's complaints about restrictions, Washington's demand for compliance — frames the next round of talks. Both sides now have until Jan. 10 to bridge it.