A New Chapter in U.S.–China Relations
President Donald J. Trump and Chinese President Xi Jinping have reached a historic trade and economic agreement that reduces tariffs, reopens exports of critical minerals, and pauses multiple rounds of retaliation between the two largest economies.
The framework takes effect on November 10, 2025 and is expected to restore predictability across global supply chains heading into 2026.
U.S. Tariff Changes
The White House confirmed that tariffs tied to fentanyl related restrictions will be reduced by 10%, cutting the average rate on many Chinese imports from 20% to 10%.
The United States will also:
Maintain the existing 10% reciprocal tariff on Chinese goods through November 2026
Extend Section 301 tariff exclusions that were set to expire on November 29, 2025, now valid through November 10, 2026, covering more than $40B in annual imports
Pause implementation of both the End User Controls Rule and the Maritime and Shipbuilding 301 actions for one year
For importers, this effectively halves certain tariff rates and freezes new tariff exposure for 12 months.
China’s Commitments
China’s commitments are extensive and roll back nearly eight months of retaliation.
All retaliatory tariffs imposed since March 4, 2025 are suspended. These had included rates between 25% and 40% on U.S. agricultural exports like soybeans, pork, beef, chicken, and dairy
Export controls on rare earth elements including gallium, germanium, antimony, and graphite are removed through new general export licenses
Semiconductor sanctions are lifted and chipmaker Nexperia will resume production for global markets
China will halt exports of fentanyl precursor chemicals to North America and impose tighter controls worldwide
China commits to purchase at least 12 million metric tons of U.S. soybeans before the end of 2025 and 25 million metric tons annually in 2026, 2027, and 2028
These steps reopen an estimated $60–70B in annual U.S. exports that had been affected since early 2025.
Global Impact
The agreement provides a 12 month window of tariff stability and de-escalation between the two nations.
During the same Asia trip, President Trump announced
Reciprocal trade agreements with Malaysia and Cambodia
New trade frameworks with Thailand and Vietnam
A $550B Japanese investment expansion and new critical minerals agreement with Japan
Multi billion dollar Korean investments in energy, technology, and maritime infrastructure
Together these moves create a broader Indo Pacific supply chain realignment focused on U.S. manufacturing growth and energy independence.
Importal Takeaway
This agreement establishes the most stable tariff environment since 2018. For importers it means lower landed costs, extended duty relief under Section 301, renewed access to rare earths, and stronger agricultural exports.
The key question now is whether the 10% reciprocal tariff will remain after 2026 or evolve into a broader long term trade framework.
Importers should update tariff models, review supplier contracts, and make use of the extended exclusion period.
As soon as a CSMS is released, Importal’s Tariff Tracker instantly updates to show the new 10% rate and 2026 exclusion extension, enabling companies to model landed cost savings and assess exposure in real time.
