Executive summary

In a Fact Sheet issued on 1 November 2025, United States (US) President Donald Trump announced that China has agreed to a series of measures aimed at rebalancing trade and addressing national security concerns. This announcement followed meetings held in South Korea between President Trump and President Xi of China. The announcement also highlights new commitments secured in South Korea to "support American jobs," strengthen US energy and technology leadership, and "build the US-Korea maritime partnership."

Key components of the trade and economic deal

US commitments

The Fact Sheet states that the US "will lower the tariffs on Chinese imports imposed to curb fentanyl flows by removing 10 percentage points of the cumulative rate," effective 10 November 2025, "and will maintain the suspension of heightened reciprocal tariffs on Chinese imports" until 10 November 2026. During this suspension period, the current 10% tariff remains in effect. The US will further extend the expiration of certain Section 301 tariff exclusions, moving their expiration from 29 November 2025 to 10 November 2026.

US regulatory actions will be paused for one year beginning 10 November 2025. Specifically, the US will suspend implementation of the interim final rule, titled "Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities," and will suspend implementation of responsive actions taken pursuant to the Section 301 investigation into China's alleged targeting of the maritime, logistics and shipbuilding sectors. During these suspensions, the US will negotiate with China under Section 301 while continuing working with the Republic of Korea to revitalize US shipbuilding.

China commitments

According to the Fact Sheet, "China will suspend the global implementation of the expansive new export controls on rare earths and related measures" announced on 9 October 2025 and "will issue general licenses valid for exports of rare earths, gallium, germanium, antimony, and graphite for the benefit of U.S. end users and their suppliers around the world." The general licenses amount to a "de facto removal of controls" imposed in April 2025 and October 2022, the Fact Sheet states. China will also "take significant steps to end the flow of fentanyl" to the US by stopping shipments of designated chemicals to North America and strictly controlling exports of certain other chemicals globally.

On trade, China "will suspend all of the retaliatory tariffs" announced since 4 March 2025, including tariffs affecting a broad range of US agricultural products such as chicken, wheat, corn, cotton, sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy. It will also "suspend or remove all of the retaliatory non-tariff countermeasures taken" against the US since 4 March 2025, including the listing of "certain American companies on its end user and unreliable entity lists." In addition, China will purchase at least 12m metric tons of US soybeans during the last two months of 2025 and at least 25m metric tons of US soybeans in each of 2026, 2027 and 2028, and will resume purchases of US sorghum and hardwood logs.

In technology and shipping, China will take measures to allow trade to resume from facilities in China producing certain basic power control chips, "allowing production of critical legacy chips to flow to the rest of the world." China will remove measures taken in response to the US Section 301 investigation into China's alleged targeting of the maritime, logistics and shipbuilding sectors and will remove sanctions imposed on various shipping entities. Additionally, China will "further extend the expiration of its market-based tariff exclusion process for imports" from the US, keeping exclusions valid until 31 December 2026, and will terminate antitrust, anti-monopoly and anti-dumping investigations targeting US companies in the semiconductor supply chain.

Implications for businesses

Companies reliant on critical minerals should find improved availability of rare-earth elements, gallium, germanium, antimony and graphite for US end uses as general licenses take effect and will need to monitor licensing scope and compliance requirements.

Agricultural exporters should prepare for potentially significant near-term and multi-year purchasing commitments from China and reassess logistics and contracting for late 2025 through 2028.

Semiconductor and electronics supply chains may benefit from the renewed trade from China facilities producing power control chips and the termination of Chinese investigations targeting US firms.

Importers should consider the financial impact of the 10% tariff reduction effective 10 November 2025, validate eligibility for Section 301 tariff exclusions extended to 10 November 2026 and adjust compliance programs considering the one-year suspensions of the end-user affiliate control rule and the responsive Section 301 maritime actions.

Shipping and logistics stakeholders should monitor the removal of Chinese measures in maritime and logistics and potential normalization of routes and counterparties.

Actions for businesses to consider

Affected companies should consider the following actions:

• Map affected stock-keeping units (SKUs) and Harmonized Tariff Schedule (HTS) classifications to identify where the 10% tariff reduction applies and where Section 301 exclusions might be leveraged through 10 November 2026
• Engage compliance teams to prepare for general license frameworks in China; document end-use and supply chains to meet licensing conditions
• Renegotiate supply and sales contracts in agriculture, semiconductors, critical minerals and shipping to reflect new market access, pricing and risk allocations
• Monitor forthcoming US agency guidance (US Trade Representative, Commerce/Bureau of Industry and Security, Customs and Border Patrol) on implementation timelines, documentation, and any carve-outs or clarifications

Companies should also consult with legal and trade advisors to navigate the China trade and economic agreement and to comply with any new regulations.