US Treasury Secretary Scott Bessent said the United States and China may continue their current trade truce beyond 2026 if discussions between the two countries remain productive. More meetings are expected later this year to address tariffs, trade rules, and the supply of critical minerals.
Bessent also revealed that both countries could begin formal talks on artificial intelligence regulations within the next four to eight weeks. The discussions would focus on creating safeguards and guidelines for the fast growing AI sector.
As part of a new trade arrangement, Washington and Beijing are working on a list of non strategic goods that could face lower tariffs or even be exempt from tariffs altogether. The first phase could cover products worth around $30 billion.
The two sides are also developing an investment framework aimed at providing greater clarity for businesses. The proposal would identify certain investments that would not require review by US national security authorities.
Despite progress in negotiations, Bessent said the Trump administration is not in a hurry to extend the current trade agreement, which is scheduled to expire in November.
He stressed that any future extension would depend on the outcome of upcoming talks and whether both countries continue making progress on key economic and trade issues.
