The White House announced Saturday that President Donald Trump and Chinese President Xi Jinping have finalized a wide-ranging trade agreement aimed at easing economic tensions between Washington and Beijing.
The deal, described by the administration as a “massive victory,” was concluded last week during a bilateral meeting in Busan, South Korea, and includes tariff reductions, agricultural trade commitments, and new measures to curb the flow of fentanyl precursors into the United States.
According to a White House statement, the agreement “safeguards U.S. economic strength and national security while putting American workers, farmers, and families first.”
Under the terms of the deal, China agreed to curb the export of chemicals used in the production of fentanyl, suspend newly announced restrictions on rare earth exports, and lift several retaliatory trade measures targeting U.S. industries.
The commitments also reopen Chinese markets to major American agricultural exports, including soybeans, pork, and dairy products, and restore trade relations with several U.S. companies affected by previous sanctions.
As outlined by the White House, China specifically agreed to:
- Suspend new export controls on rare earth elements announced on October 9.
- Issue general licenses for exports of rare earths, gallium, germanium, antimony, and graphite.
- Take “significant measures” to curb the flow of fentanyl precursor chemicals to the United States.
- Suspend all retaliatory tariffs imposed since March, including those targeting U.S. farm products such as soybeans, pork, corn, and dairy.
- Remove non-tariff countermeasures against U.S. industries.
- Purchase 12 million metric tons of U.S. soybeans by the end of 2025 and 25 million tons annually through 2028.
- Resume imports of U.S. sorghum and hardwood logs.
- Resume trade from Nexperia’s chip facilities in China.
- Lift sanctions imposed in response to the U.S. investigation into China’s maritime, logistics, and shipbuilding sectors.
- End investigations targeting U.S. semiconductor companies.
- Extend China’s market-based tariff exclusion process for U.S. imports through December 31, 2026.
In exchange, the United States agreed to a series of reciprocal steps designed to sustain progress while maintaining oversight over sensitive industries. The White House confirmed that:
- Tariffs on Chinese imports, originally imposed to combat fentanyl trafficking, will be reduced by 10 percentage points beginning November 10.
- Higher reciprocal tariffs will remain suspended until November 10, 2026.
- Certain Section 301 tariff exclusions will be extended through November 10, 2026.
- Enforcement of a new export rule targeting affiliates of blacklisted Chinese firms will be delayed until November 10, 2026.
- The administration will suspend new trade actions related to China’s shipbuilding and logistics sectors until late 2026, while continuing coordination with South Korea and Japan to bolster U.S. shipbuilding capacity.
The administration described the agreement as part of a broader strategic effort to realign U.S.-China trade relations, emphasizing that the deal advances both economic and national security interests.
The White House said the accord was one of several key achievements from President Trump’s Asia trip, which also produced trade agreements with Malaysia and Cambodia and set new frameworks for future negotiations with Thailand and Vietnam.
Additionally, the trip secured expanded investment commitments from Japan and South Korea, further strengthening regional economic partnerships.
“This trade and economic deal caps President Trump’s successful trip to Asia, where he delivered a series of historic wins for the American people,” the White House said in its announcement.
The administration noted that implementation of the agreement will begin immediately, with follow-up discussions between U.S. and Chinese officials expected in early 2026 to review compliance and trade progress.
