USTR chief Greer says 3-to-6-month extension 'appropriate range'; both sides want renewal

No 'giant grand bargain' expected at Thursday summit; US prefers phased renewals to monitor compliance

AI dialogue, trade committee details expected to be fleshed out

US Trade Representative Jamieson Greer looks on as President Donald Trump speaks at a press conference during the G7 summit in Évian-les-Bains, France, on Thursday. [AFP]
US Trade Representative Jamieson Greer looks on as President Donald Trump speaks at a press conference during the G7 summit in Évian-les-Bains, France, on Thursday. [AFP]

The United States and China are discussing a three-to-six-month extension of their trade truce, which expires Nov. 10, but a formal announcement at this week's summit is unlikely. Washington, citing China's restrictions on rare earth exports among other concerns, has said it would be "naive" to place full trust in Beijing — and prefers rolling the truce over in monthly increments while monitoring Chinese compliance rather than locking in a longer deal.

US Trade Representative Jamieson Greer said Monday (local time) in an interview with Bloomberg TV that the two sides would continue to discuss the tariff truce set to expire Nov. 10. "We will keep talking about this," he said.

Greer said he did not expect an extension to be announced immediately but noted that time remained. "Both sides want an extension, so I expect discussions to continue," he said.

Asked whether a three-to-six-month window was under consideration, Greer said that was "probably the appropriate range."

However, he indicated that an announcement this week was unlikely. Speculation had mounted that the summit between President Donald Trump and Chinese President Xi Jinping at the White House on Thursday could produce a truce-extension deal, but Greer's remarks suggested no such announcement should be expected.

Washington's preference for short, phased renewals over a longer truce reflects its intention to keep checking whether Beijing is living up to its commitments.

Greer singled out China's restrictions on rare earth exports as a key source of uncertainty. "To say that we fully trust each other at this point would be a little naive," he said.

He also drew a line against the prospect of a sweeping deal to resolve all trade disputes between the two countries at the summit.

In a separate interview with Fox News, Greer said "there will not be some giant grand bargain between the US and China."

"The two countries' economic and political systems are too different," he said. "What we really want is sustained stability."

The two countries launched a tariff war in April last year, each ratcheting up duties against the other. They called a truce in May of that year after their first trade negotiations in Switzerland, agreeing to sharply cut tariffs for 90 days.

The truce was extended multiple times, and at a summit held in South Korea in October last year the two sides agreed to maintain the tariff truce for one year. The current deadline is Nov. 10.

At a summit in Beijing in May, the two countries also announced measures to manage trade tensions — agreeing to establish a Board of Trade, with China committing to purchase 200 Boeing aircraft and expand imports of US agricultural products.

The upcoming summit is expected to focus on fleshing out existing agreements rather than striking any major new trade deal.

Greer said the summit would likely kick off substantive AI-related dialogue between the two countries and that the operating procedures and product scope of the Board of Trade agreed upon in May would also be made public.


sjy@heraldcorp.com