The recent one-year trade and economic deal reached between U.S. President Trump and Chinese President Xi in November 2025. The agreement aims to de-escalate the ongoing trade war by addressing several key issues through reciprocal actions from both countries.
Key Provisions of the Deal
The agreement covers tariffs, agricultural purchases, export controls on critical materials, and other retaliatory measures.
Chinese Commitments
Agricultural Purchases: China committed to substantial purchases of U.S. agricultural products, including specific amounts of soybeans through 2028 and the resumption of purchases of U.S. sorghum and hardwood logs.
Export Controls: Beijing agreed to a one-year pause on implementing new export controls on rare earth elements and other critical minerals, issuing general licenses for export to U.S. users.
Fentanyl Control: China agreed to take significant steps to stop the flow of precursor chemicals for fentanyl into the U.S.
Tariffs and Non-Tariff Barriers: China will suspend all retaliatory tariffs and countermeasures announced since March 4, 2025, and end antitrust and anti-dumping investigations targeting U.S. semiconductor companies.
Company Specifics: Beijing committed to ensuring the resumption of trade from Nexperia's facilities in China.
United States Commitments
Tariff Reduction: The U.S. agreed to lower the "fentanyl tariff" on Chinese imports from 20% to 10%, resulting in an overall average U.S. tariff rate on Chinese goods of about 47%.
Tariff Exclusions: The U.S. will extend the expiration of certain Section 301 tariff exclusions until November 10, 2026.
Pause on New Port Fees: The U.S. will suspend for one year new port fees and heightened tariffs related to the Section 301 investigation into China's maritime and shipbuilding sectors.
Export Control Pause: The U.S. will suspend for one year the implementation of a rule expanding end-user controls.
Current Status and Outlook
The deal is seen as a temporary de-escalation. While China has reportedly purchased U.S. soybeans, their higher cost compared to Brazilian supplies may impact the pace of non-state-led purchases. Experts view the agreement as a "partial freeze" allowing time for both countries to strengthen their supply chains and economies, with ongoing negotiations expected for long-term issues.
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