- China suspends all retaliatory tariffs and removes export controls on key rare earth and mineral supplies.
- The U.S. cuts tariffs on Chinese imports by 10% and extends Section 301 exclusions until November 2026.
- Trump’s Asia tour secures major trade gains with China, Japan, Malaysia and South Korea to boost U.S. industries.
President Donald J. Trump has announced a sweeping trade and economic agreement with Chinese President Xi Jinping, marking the most extensive de-escalation in U.S.-China economic tensions in years.
The accord, finalized during Trump’s visit to the Republic of Korea, outlines a framework aimed at stabilizing bilateral trade, expanding agricultural exports, and easing restrictions on critical minerals. It also introduces joint commitments to address the flow of fentanyl into the United States an issue that has drawn bipartisan concern.
China to Lift Tariffs and Ease Export Controls
Under the agreement, China will suspend all retaliatory tariffs and non-tariff measures imposed on the United States since March 4, 2025. This includes the removal of duties on key American agricultural goods such as soybeans, corn, pork, wheat, and dairy.
In addition, China will issue general export licenses for rare earth elements, gallium, germanium, graphite, and other critical minerals. The move effectively rolls back export controls announced in 2022 and April 2025, restoring access to materials essential to U.S. manufacturing.
Beijing has also pledged to halt shipments of chemical precursors linked to fentanyl production, tightening oversight of exports worldwide. Furthermore, China will resume imports of U.S. hardwood logs and sorghum while committing to purchase at least 12 million metric tons of soybeans before the end of 2025. Annual soybean imports will then increase to 25 million metric tons from 2026 through 2028.
U.S. Reduces Tariffs, Pauses Regulatory Actions
In exchange, the United States will reduce existing tariffs on Chinese imports by 10 percentage points, effective November 10, 2025. Washington will also extend the expiration of certain Section 301 tariff exclusions until November 2026.
The agreement further pauses enforcement of new restrictions targeting affiliates of Chinese entities and delays actions linked to the Section 301 investigation into China’s shipbuilding and logistics sectors.
These temporary suspensions are intended to create space for further negotiation while maintaining U.S. coordination with Japan and South Korea on maritime and industrial development. The U.S. will keep its 10% reciprocal tariff rate in place during the suspension period.
Broader Commitments Across Asia
The deal with China capped Trump’s broader diplomatic efforts across Asia. In Japan, he secured new energy and key minerals agreements and confirmed investments tied to Tokyo’s $550 billion U.S. commitment. In Malaysia, the U.S. signed reciprocal trade accords with Malaysia and Cambodia, while launching negotiation frameworks with Thailand and Vietnam.
During his visit to South Korea, Trump also reached agreements focused on maritime cooperation and semiconductor production, alongside billions in investments supporting American industries. Together, these developments underscore a broad reconfiguration of economic ties between Washington and its Asian partners.
