U.S. Cements Trump-Xi Deal with Tariff Exclusion Extensions

WASHINGTON — The Office of the United States Trade Representative (USTR) confirmed today it will extend 178 Section 301 tariff exclusions on Chinese imports through November 2026. Crucially, the agency explicitly cited the "trade and economic deal" reached between President Donald Trump and President Xi Jinping on November 1 as the directive force behind the move, offering the strongest regulatory confirmation to date of the mutual agreement.

The extensions, covering exclusions previously reinstated or created between 2023 and 2024, were set to expire on November 29, 2025. Taking effect November 30, the new provisions avert a scheduled lapse and operationalize the diplomatic truce reached in Busan earlier this month.

While tariff adjustments are often routine, this specific action carries significant geopolitical weight. Unlike unilateral pauses—such as the broad reciprocal tariff freeze seen in April—this extension is framed as a specific fulfillment of a bilateral negotiation. The USTR stated the decision incorporates "presidential direction" following the November 1 accord, effectively translating a diplomatic handshake into binding trade regulation.

From Truce to Policy

The extension halts a volatile year of retaliatory escalations involving fentanyl-related tariffs and rare earth export controls. According to administration officials, the move represents the U.S. delivering on its side of the bargain.

"The U.S.-China pause is working," Treasury Secretary Scott Bessent stated earlier this week, noting that Beijing is "100% on track" with commitments to purchase 87.5 million tons of U.S. soybeans.

The diplomatic framework supporting these exclusions was further reinforced on November 24, when President Trump described a call with President Xi as "very good," citing "significant progress" on the trade deal.

Scope of Relief

The 178 exclusions cover 164 products previously reinstated in May 2024 and 14 solar manufacturing equipment exclusions added in September. Industry commentators had urged the USTR to approve the extensions, citing a lack of non-China supply chains for specific electric vehicle components, semiconductor machinery, and medical equipment.

By extending the relief through November 2026, the administration has aligned the tariff schedule with the one-year timeline of the Trump-Xi truce. U.S. Customs and Border Protection is expected to issue immediate guidance on the updated Harmonized Tariff Schedule provisions to ensure compliance by the November 30 effective date.