US and China Extend Trade Truce by Two Months as Trump Welcomes Xi in Historic DC Visit
The United States and China agreed to extend their trade truce by two months, Treasury Secretary Scott Bessent announced, as President Trump personally greeted Chinese President Xi Jinping at Joint Base Andrews in a rare diplomatic gesture marking the start of high-stakes talks in Washington.
The United States and China have agreed to extend their trade truce by two months, Treasury Secretary Scott Bessent announced, giving the world's two largest economies additional time to negotiate a broader deal and avert a return to escalating tariffs. The extension was confirmed as Chinese President Xi Jinping arrived in Washington for a high-stakes visit that both sides are framing as a pivotal moment for bilateral relations.
President Donald Trump personally greeted Xi at Joint Base Andrews, a historic gesture not seen in more than six decades. The last time an American president welcomed a foreign leader at the military installation was in 1962, when John F. Kennedy met British Prime Minister Harold Macmillan. The White House has described the visit as an opportunity to reset the tone of the relationship and to showcase diplomatic momentum.
Bessent, who met with a Chinese official in Washington on Wednesday ahead of the formal talks, said the two-month extension would allow negotiators to continue working through outstanding issues without the immediate threat of new tariffs. The truce, originally set to expire, had been a key source of stability for global markets and businesses that depend on cross-border trade.
The visit comes amid lingering tensions over trade, technology, and national security. While the extension signals a willingness to keep talking, officials on both sides have cautioned that significant differences remain. The Trump administration has pressed for structural changes to China's trade practices, while Beijing has sought relief from existing tariffs and greater predictability in the relationship.
Trump has planned what aides describe as a grand spectacle for the talks, aiming to project strength and hospitality simultaneously. The arrival ceremony at Joint Base Andrews was designed to underscore the importance of the visit, with military honors and a formal welcome. The two leaders are expected to hold meetings at the White House and possibly at other locations in Washington over the coming days.
The trade truce extension is likely to be welcomed by financial markets, which have been sensitive to any signs of renewed conflict between Washington and Beijing. American farmers, manufacturers, and technology companies have all been affected by the tariff back-and-forth, and many have urged both governments to find a durable resolution.
Analysts note that the two-month window is relatively short and that the hardest issues — including intellectual property protections, forced technology transfers, and state subsidies — remain unresolved. The extension buys time but does not guarantee a breakthrough. Both sides have incentives to avoid a full-blown trade war, but domestic political pressures in the United States and China's own economic priorities complicate the path forward.
Xi's visit is his first to Washington during Trump's second term, and it carries symbolic weight beyond trade. The personal dynamic between the two leaders has oscillated between confrontation and cooperation, and the outcome of this visit could set the tone for the remainder of Trump's presidency. The White House has indicated that discussions will also touch on regional security, including North Korea and Taiwan, though trade remains the central focus.
Bessent's announcement of the extension came after consultations with Chinese counterparts and reflects a mutual desire to keep the negotiating track alive. The Treasury Secretary has been a key figure in the administration's economic diplomacy, and his statement provided the clearest signal yet that both sides prefer to avoid a rupture.
For now, the extension offers a reprieve. Businesses and investors will watch closely for any signs of progress in the talks, while officials on both sides prepare for what could be a tense but consequential round of negotiations. The coming weeks will determine whether the truce holds and whether a more comprehensive agreement is within reach.
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