What the New U.S.–China Trade Deal Means for Businesses

This month President Donald J. Trump announced a new trade and economic agreement with President Xi Jinping of China. Both nations agreed to take specific steps to ease trade tensions and improve cooperation.

China agreed to stop the flow of chemicals used to make fentanyl into the United States and to limit the export of certain other chemicals worldwide. China also agreed to pause the export restrictions it announced on October 9, 2025, that applied to rare earth elements and other important minerals. These materials, such as gallium, germanium, antimony, and graphite, are used in products like electronics and batteries. By issuing general licenses for these exports, China is lifting restrictions it had put in place in April 2025 and October 2022.

China will also suspend all extra tariffs it announced since March 4, 2025, on U.S. goods such as chicken, wheat, corn, cotton, soybeans, pork, beef, seafood, fruits, vegetables, and dairy. In addition, it will remove other trade barriers and drop U.S. companies from its “unreliable entity” and “end user” lists. China will end investigations it had launched against U.S. semiconductor companies, including those focused on antitrust and anti-dumping claims.

As part of the deal, China agreed to make large agricultural purchases from the United States. This includes at least 12 million metric tons of soybeans during the last two months of 2025 and 25 million metric tons each year from 2026 through 2028. China will also restart purchases of American sorghum and hardwood logs. Trade from Nexperia’s facilities in China will resume, allowing continued production of key computer chips. China will remove trade actions it took in response to the U.S. investigation into China’s shipbuilding, logistics, and maritime sectors, and will lift related sanctions. The tariff exclusion process for U.S. imports into China will also be extended through December 31, 2026.

The United States also agreed to make several changes. It will lower some tariffs on Chinese imports that were created to target fentanyl flows, reducing those rates by 10 percentage points starting November 10, 2025. The U.S. will keep other reciprocal tariffs at 10 percent until November 10, 2026. It will also extend certain Section 301 tariff exclusions until November 10, 2026, and pause new export control measures for one year beginning November 10, 2025. During that time, the U.S. and China will continue to negotiate while maintaining partnerships with South Korea and Japan to support the American shipbuilding industry.

The White House stated that this deal was part of a broader effort to strengthen U.S. trade relationships across Asia. During the same trip, President Trump signed trade agreements with Malaysia and Cambodia, announced new trade frameworks with Thailand and Vietnam, and signed mineral cooperation agreements with Thailand and Malaysia. In Japan, he announced projects tied to Japan’s $550 billion investment in the U.S., a new minerals agreement, and new purchases of American energy. In South Korea, he announced major investment commitments to support U.S. jobs, energy development, technology, and maritime cooperation.

For U.S. businesses, the agreement includes changes affecting tariffs, agricultural exports, rare earth materials, and technology trade. Companies that import from or export to China may see adjustments in costs, trade rules, or licensing requirements and should review how the new measures apply to their operations.

How We Can Help

Our firm assists importers, exporters, and manufacturers in understanding and complying with trade laws and U.S. Customs and Border Protection (CBP) regulations. We can help businesses evaluate how the new U.S.–China trade agreement affects their products, tariffs, and supply chains. Have questions? Give our office a call today at (917) 546-6997 or schedule an intake meeting, we would be happy to speak with you.

Have questions? Give our office a call today at (917) 546-6997 or schedule an intake meeting, we would be happy to speak with you.

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