In late October 2025, following meetings between President of US and President of China, a framework for a trade truce was announced. This agreement provided immediate stability by stepping back from a recent escalation of punitive measures:
โTariff Reduction: The U.S. agreed to reduce the overall tariff rate on Chinese goods from 57% to 47%. Specifically, the fentanyl-related tariffs imposed earlier were halved from 20% to 10%.
โAgricultural Purchases: China committed to resuming substantial purchases of U.S. agricultural products, including at least 25 million metric tons of U.S. soybeans annually for the next three years.
โRare Earth Minerals: Beijing suspended its newly imposed export controls on rare earth materials for one year, providing the U.S. with crucial time to accelerate investment in its own supply chains for these critical minerals.
โSuspension of Other Measures: Both sides agreed to suspend or delay new punitive measures, including U.S. plans to expand technology export limits and newly introduced port fees targeting Chinese-linked vessels.
