The deal, which also includes resumption of Chinese purchases of American soybeans, averts Trump’s threatened 100% tariff on Chinese goods and extends a delicate trade truce between the world’s two largest economies for about a year.
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Here are some of the key elements of the Trump-Xi agreement that was reached in Busan, South Korea on Thursday:
TARIFF REDUCTION ON FENTANYL-RELATED CHINESE GOODS
The U.S. will halve the 20% tariff on Chinese goods related to supplies of fentanyl opioid precursor chemicals coming from China. The reduction to 10% on the duties first imposed in February will cut the overall U.S. tariff rate on Chinese imports to about 47% from 57%, according to U.S. officials.
That total includes duties of about 25% imposed on Chinese imports during Trump’s first term in the White House and a reduced, 10% “reciprocal” tariff imposed in April and previous “Most Favored Nation” tariff rates.
PAUSE ON CHINA’S RARE-EARTH EXPORT CONTROLS
The White House said China will also issue general licenses for exports of rare earths, gallium, germanium, antimony and graphite for the benefit of U.S. end users and their suppliers. The White House said that amounted to “the de facto removal of controls China imposed in April 2025 and October 2022.”
China also agreed to suspend all retaliatory tariffs it has announced since March 4, including duties on U.S. chicken, wheat, corn, cotton, sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products, the White House said.
It said Beijing would also suspend or remove all retaliatory non-tariff countermeasures taken against the U.S. since March 4, such as listing certain American companies on the Chinese government’s end user and unreliable entity lists.
TRUMP ADMINISTRATION’S EXPORT CONTROLS PAUSED
The expanded blacklist would have automatically included firms more than 50% owned by companies already on the list and would have had the biggest impact on Chinese companies, banning U.S. exports to thousands more Chinese firms.
CHINA COMMITS TO SOYBEAN PURCHASES
China agreed to buy at least 12 million metric tons of U.S. soybeans in the last two months of 2025, as well as at least 25 million metric tons of U.S. soybeans in each of the following three years, the White House said. China also agreed to resume purchases of U.S. sorghum and hardwood logs, the White House said.
In addition, Beijing will extend its market-based tariff exclusion process for imports from the U.S., with exclusions to remain valid until December 31, 2026, the White House said.
China will terminate its antitrust, anti-monopoly and anti-dumping investigations targeting U.S. firms in the semiconductor supply chain, the White House said.
TRUMP ADMINISTRATION PAUSES NEW PORT FEES
Beijing agreed to remove measures it took in retaliation for Washington’s Section 301 investigation of China’s dominance of the global maritime, logistics and shipbuilding sector, and to remove sanctions imposed on various shipping entities, the White House said.
The White House said it would negotiate with China about the issue in the meantime, while continuing talks with South Korea and Japan on revitalizing American shipbuilding.
COOPERATION ON FENTANYL TRAFFICKING
China agreed to take “significant measures” to end the flow of fentanyl to the U.S., including moves to halt the shipment of certain precursor chemicals to North America and strictly control exports of other chemicals worldwide, the White House said.
U.S. Treasury Secretary Scott Bessent told Fox Business Network this week that working groups from the two countries would “set very objective measures” in the coming weeks on reducing flows to measure success in curbing the deadly opioid blamed for tens of thousands of U.S. overdose deaths every year.
When Trump first imposed the fentanyl-related tariffs, officials in his administration said they were wary of ongoing promises by China to help, and that the tariffs would remain in place until Beijing had taken concrete measures.
Reporting by David Lawder, Andrea Shalal, Doina Chiacu and Michael Martina; Editing by Paul Simao and David Gregorio
Our Standards: The Thomson Reuters Trust Principles.
