U.S. & China | November 1, 2025
Overview of the Agreement
This week, the United States and China reached a trade and economic agreement. The deal aims to rebalance trade, address U.S. economic and security concerns, and support American workers, farmers, and families. The agreement includes major commitments from China to halt illicit fentanyl flows, eliminate critical mineral export controls, end economic retaliation, and reopen markets to U.S. agriculture.
Key Chinese Commitments
Reopening Markets to U.S. Agriculture
A cornerstone of the agreement is China's commitment to resume large-scale purchases of U.S. agricultural products, especially soybeans. This provides crucial stability and demand for American farmers. The chart below visualizes the committed purchase volumes for U.S. soybeans over the coming years.
Lifting Retaliatory Tariffs
China will suspend all retaliatory tariffs announced since March 4, 2025. This suspension removes barriers on a vast swath of U.S. agricultural exports, as shown in the chart.
Securing Critical Minerals
China will eliminate export controls on critical minerals by issuing general licenses for U.S. end users. This secures access to a portfolio of materials vital for technology and manufacturing.
Combating Fentanyl
China will take significant measures to stop the flow of fentanyl precursors to North America through a two-part process:
Technology & Maritime
The deal terminates investigations into U.S. companies and removes retaliatory measures in key sectors:
Semiconductors
Terminates antitrust & anti-dumping investigations into U.S. chip companies.
Maritime
Removes retaliatory measures & sanctions on shipping entities.
Key American Actions
In response to China's commitments, the United States will take reciprocal steps to de-escalate trade measures.
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Tariff Reduction
Lowering tariffs on certain Chinese imports by 10 percentage points, effective Nov. 10, 2025.
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Suspension of Tariffs & Controls
Suspending heightened reciprocal tariffs until Nov. 10, 2026. Also suspending for one year new export controls and Section 301 maritime actions.
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Extension of Exclusions
Extending certain Section 301 tariff exclusions until November 10, 2026.
Agreement Timeline
The agreement phases in key actions and suspensions over the next year and beyond.
Nov 10, 2025
U.S. lowers tariffs by 10 points.
U.S. one-year suspensions on export controls & maritime actions begin.
Late 2025
China purchases 12 MMT of U.S. soybeans.
Nov 10, 2026
U.S. one-year suspensions end.
U.S. Section 301 tariff exclusions extension ends.
Dec 31, 2026
China's market-based tariff exclusion process extension ends.
2026 - 2028
China purchases 25 MMT of U.S. soybeans annually.
Broader Context: Other U.S. Agreements in Asia
This deal with China was part of a broader presidential trip to Asia, which included multiple other agreements related to American economic and national interests.
Japan
$550B
Investment Commitment
Plus a landmark critical minerals agreement and historic purchases of U.S. energy.
Malaysia & Cambodia
Reciprocal Trade
Agreements Signed
Plus critical minerals cooperation with Malaysia and trade negotiation frameworks with Thailand & Vietnam.
Republic of Korea
Landmark Commitments
Billions in Investments
Supporting American jobs, energy dominance, technology leadership, and the U.S.-Korea maritime partnership.