President Donald J. Trump has announced a historic economic and trade agreement with Chinese President Xi Jinping, marking a major breakthrough in rebalancing U.S.–China relations. The deal, finalized during President Trump’s official visit to the Republic of Korea, underscores his administration’s focus on restoring fair trade, strengthening national security, and prioritizing American workers, farmers, and families.
A Strategic Victory for U.S. Economic Interests
The agreement represents a decisive win for American industries and consumers, with both sides taking substantial steps to reset trade relations after years of tension. Under the deal, China has committed to halting the export of precursor chemicals used to manufacture fentanyl, a move hailed by U.S. officials as a crucial measure to curb the flow of dangerous narcotics into the United States.
Beijing will also suspend its recently expanded export controls on key materials such as rare earth elements, gallium, germanium, antimony, and graphite. These resources are vital to advanced manufacturing, defense technology, and clean energy production. By removing these restrictions, China effectively reverses policies that had constrained U.S. access to critical minerals since 2022.
Major Economic Concessions from China
As part of the new framework, China agreed to lift all retaliatory tariffs imposed since March 2025. This includes tariffs on a broad range of U.S. agricultural exports, from soybeans and corn to beef, pork, and dairy products, restoring open access to one of America’s largest trading partners.
Additionally, China pledged to purchase at least 12 million metric tons of U.S. soybeans before the end of 2025, followed by 25 million metric tons annually through 2028. These purchases are expected to deliver a strong boost to the U.S. farming sector and rural economy.
The agreement further includes commitments to end investigations and restrictions targeting American companies in the semiconductor supply chain, while ensuring that Nexperia’s facilities in China resume operations to support the global chip industry.
U.S. Tariff Reductions and Policy Adjustments
In return, the United States will reduce select tariffs on Chinese imports by 10 percentage points beginning November 10, 2025. The Trump administration will also extend Section 301 tariff exclusions until November 2026 and suspend the enforcement of certain regulatory measures for one year to allow continued negotiations under the framework.
The White House emphasized that these actions are designed to incentivize compliance from Beijing while maintaining pressure to uphold U.S. trade priorities.
Broader Achievements from Trump’s Asia Trip
This landmark deal caps off a highly successful series of diplomatic and economic initiatives during President Trump’s Asia tour. In Malaysia, the President signed reciprocal trade agreements with Malaysia and Cambodia, while launching new trade frameworks with Thailand and Vietnam aimed at expanding U.S. influence in Southeast Asia.
In Japan, President Trump announced progress on Japan’s $550 billion investment commitment in the United States, including agreements focused on critical minerals, manufacturing, and energy cooperation. The trip also included major bilateral commitments in South Korea to strengthen U.S. maritime capabilities, bolster the technology sector, and promote American energy exports.
A Milestone in U.S. Trade Policy
The White House described the new China deal as “a massive victory for U.S. economic strength and national security.” Officials noted that it reflects President Trump’s long-standing mission to restore balance in global trade while reinforcing the resilience of American supply chains.
With this agreement, the administration has reaffirmed its commitment to protecting domestic industries, expanding international market access for U.S. products, and maintaining America’s leadership in global economic policy.