Seoul: President Donald J. Trump has successfully negotiated a pivotal trade and economic agreement with President Xi Jinping of China, marking a significant achievement aimed at boosting U.S. economic strength and national security while prioritizing American workers, farmers, and families.
According to The White House, the historic agreement entails several commitments from China, including halting the flow of precursors used to manufacture fentanyl into the United States. China has also agreed to suspend its newly announced export controls on rare earths and related materials, issuing general licenses for exports to benefit U.S. end users and their suppliers globally. This step effectively removes the controls China imposed in April 2025 and October 2022.
Further, China will take decisive measures to end the flow of fentanyl to the United States by stopping the shipment of designated chemicals to North America and regulating exports of certain chemicals worldwide. In addition, China will suspend all retaliatory tariffs announced since March 4, 2025, affecting a wide range of U.S. agricultural products. The agreement includes China’s commitment to purchasing substantial quantities of U.S. soybeans and resuming purchases of sorghum and hardwood logs.
In a move to promote global technological partnerships, China will ensure the resumption of trade from Nexperia’s facilities in China, facilitating the production of critical legacy chips for global distribution. Moreover, China will lift retaliatory measures enacted in response to the U.S.’s Section 301 investigation and terminate investigations targeting U.S. companies in the semiconductor supply chain.
In exchange, the United States will reduce tariffs on Chinese imports aimed at curbing fentanyl flows and extend certain tariff exclusions. The U.S. will also suspend the implementation of the interim final rule concerning End-User Controls for a year and continue negotiations with China under Section 301, while maintaining collaboration with South Korea and Japan on revitalizing American shipbuilding.
The deal concludes President Trump’s successful trip to Asia, where he achieved several landmark agreements. In Malaysia, he signed reciprocal trade agreements and established frameworks for negotiations with Thailand and Vietnam. In Japan, President Trump secured major projects to further Japan’s $550 billion investment in the U.S., signed a critical minerals agreement, and enhanced cooperation to combat illegal drug trafficking. His visit to the Republic of Korea resulted in substantial commitments to support American jobs, bolster U.S. energy dominance, and strengthen the U.S.-Korea maritime partnership.