REBALANCING TRADE WITH CHINA:
This week in the Republic of Korea, President Donald J. Trump struck a notable trade and economic agreement with China’s President Xi Jinping—a triumph that not only fortifies U.S. economic resilience but also prioritizes the interests of American workers, farmers, and families.
- This landmark accord encompasses several Chinese commitments, including:
- A pledge to halt the flow of precursors used for fentanyl production into the United States.
- The effective elimination of China’s current and proposed export controls on rare earth elements and other vital minerals.
- A promise to cease retaliatory actions against U.S. semiconductor manufacturers and other significant American corporations.
- A commitment to open Chinese markets to U.S. soybeans and other agricultural exports.
CHINESE ACTIONS:
- China will suspend the implementation of extensive new export controls on rare earths that were set to take effect globally on October 9, 2025.
- China will issue general licenses for the export of rare earths, gallium, germanium, antimony, and graphite, aimed at benefiting U.S. end users and their global suppliers. This essentially reverses the strict controls imposed in April 2025 and October 2022.
- China is committed to taking significant actions to halt the flow of fentanyl into the United States, including stopping shipments of designated chemicals to North America and imposing strict controls on certain chemical exports worldwide.
- All retaliatory tariffs introduced since March 4, 2025, will be suspended, which encompasses tariffs on a wide range of U.S. agricultural products, including chicken, wheat, corn, cotton, sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy.
- China will eliminate or suspend all non-tariff retaliatory measures against the United States implemented since March 4, 2025, which includes removing certain American companies from its unreliable entity list.
- China will commit to purchasing a minimum of 12 million metric tons (MMT) of U.S. soybeans in the last two months of 2025, and at least 25 MMT annually for 2026, 2027, and 2028. Additionally, purchases of U.S. sorghum and hardwood logs will resume.
- China will ensure the resumption of trade from Nexperia’s facilities, facilitating the flow of essential legacy chips to global markets.
- Retaliatory measures taken in response to the U.S. Section 301 investigation on China’s maritime, logistics, and shipbuilding sector will be lifted, along with sanctions on various shipping entities.
- The expiration of its market-based tariff exclusion process for U.S. imports will be extended, with exclusions remaining valid until December 31, 2026.
- China will conclude its investigations targeting U.S. companies within the semiconductor supply chain, including antitrust, anti-monopoly, and anti-dumping inquiries.
AMERICAN ACTIONS:
- The United States will reduce tariffs on Chinese imports imposed to mitigate fentanyl trafficking by lowering the cumulative rate by 10 percentage points, effective November 10, 2025. The suspension of heightened reciprocal tariffs on Chinese imports will remain in effect until November 10, 2026. (The current 10% reciprocal tariff will still apply during this suspension.)
- Expiration of specific Section 301 tariff exclusions will be extended until November 10, 2026, from the current due date of November 29, 2025.
- The U.S. will postpone for one year the enforcement of the interim final rule titled Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities, starting November 10, 2025.
- Implementation of responsive actions taken under the Section 301 investigation concerning China’s maritime, logistics, and shipbuilding sectors will also be suspended for one year, beginning November 10, 2025. During this period, the U.S. will engage in negotiations with China while maintaining strong cooperation with the Republic of Korea and Japan to revitalize American shipbuilding.
SECURING ANOTHER WIN FOR THE AMERICAN PEOPLE:
This trade and economic agreement highlights President Trump’s achievements during his recent trip to Asia, where he secured a series of significant victories for the American populace.
- In Malaysia, President Trump signed Agreements on Reciprocal Trade with Malaysia and Cambodia, while also announcing collaborative frameworks for trade negotiations with Thailand and Vietnam. Additionally, critical minerals cooperation agreements were established with Thailand and Malaysia.
- In Japan, the President unveiled major projects supporting Japan’s previous $550 billion investment pledge to the United States, aimed at revitalizing the U.S. industrial base. He also signed a landmark critical minerals agreement with Japan, secured historic U.S. energy purchases from Japan, and bolstered U.S.-Japan cooperation in combating illegal drug trafficking.
- In the Republic of Korea, the President achieved billions in significant commitments that will bolster American jobs, enhance energy dominance, promote U.S. leadership in the technological sphere, and strengthen the U.S.-Korea maritime partnership.
