FX.co ★ U.S. May Extend China Duty Pause if Rare-Earth Controls Canceled

U.S. Treasury Secretary Scott Bessent indicated that the United States might consider extending the pause on import tariffs on Chinese goods beyond the traditional three-month duration, contingent upon China retracting its proposed stringent export controls on rare earth elements. “Could we possibly consider a longer pause in exchange? It's possible. However, all of these details need to be negotiated in the upcoming weeks," Bessent stated during a press conference in Washington. The two nations have been adhering to a succession of 90-day ceasefires since earlier this year, with the next one anticipated in November. Although there has been a period of relative calm, tensions have recently escalated as Washington broadened its technology restrictions and suggested imposing tariffs on Chinese vessels docking at U.S. ports. This has prompted China to respond with similar measures and tightened regulations on rare earths and other essential materials.