Below is a concise, structured summary of the major agreements reached during the Trump-Xi bilateral meeting on October 30, 2025, in Busan, South Korea (APEC sidelines). The deal is a one-year trade truce (effective immediately through November 9, 2026), averting a threatened 100% U.S. tariff escalation.
1. Tariff De-escalation (U.S. Side)
| Action | Details |
|---|---|
| Fentanyl Tariff Reduction | U.S. cuts additional tariff on Chinese imports from 20% → 10% (effective Nov 1, 2025) |
| Suspension of 100% Tariff Threat | No new blanket 100% tariffs on Chinese goods |
| Overall Average Tariff | Drops from 57% → 47% on Chinese imports |
| Reciprocal Tariff Freeze | "Liberation Day" tariffs (10–41%) frozen; no new hikes |
Conditional on China’s fentanyl and rare earth commitments.
2. Fentanyl & Precursor Chemical Controls (China Side)
| Commitment | Details |
|---|---|
| Stricter Export Controls | China to impose licensing + end-user verification on all fentanyl precursors (e.g., NPP, 4-ANPP) |
| Port Inspection Enhancement | 100% scanning of high-risk chemical shipments to U.S./Mexico |
| Joint Task Force | U.S.-China anti-fentanyl working group reactivated (first meeting: Dec 2025, Beijing) |
U.S. estimates: could reduce precursor flows by 60–75% within 6 months.
3. Rare Earths & Critical Minerals (China Side)
| Commitment | Details |
|---|---|
| Suspension of Export Bans | China delays rare earth export controls (originally set for Nov 1, 2025) for 1 year |
| Guaranteed Supply to U.S. | Minimum 50,000 metric tons of rare earth oxides to U.S. firms (2026) at market prices |
| No New Tech Export Restrictions | Pause on bans for gallium, germanium, antimony (key for chips, EVs, defense) |
U.S. gains breathing room to scale domestic/alternative supply (e.g., MP Materials, Australia).
4. Agricultural Purchases (China Side)
| Product | Commitment |
|---|---|
| Soybeans | China to buy $12–15 billion annually (up from ~$8B in 2024) |
| Corn, Pork, Beef | Additional $3–5 billion in U.S. ag exports (2026) |
| Port Fee Waiver | China suspends $200–300/TEU surcharge on U.S.-flagged ships |
Direct boost to U.S. farmers in Iowa, Illinois, Nebraska.
5. Follow-Up Mechanisms
| Mechanism | Timeline |
|---|---|
| Trump Visit to China | April 2026 (Beijing + Shanghai) |
| U.S.-China Trade Talks | Quarterly deputy-level meetings (first: Jan 2026, Washington) |
| Dispute Resolution | 60-day consultation before any new tariffs/restrictions |
What’s NOT Included
- No deal on TikTok (U.S. sale/divestment deadline still Jan 19, 2026)
- No resolution on semiconductors (Huawei, SMIC, Nvidia chip access)
- No IP theft or forced tech transfer reforms
- No currency manipulation clause
Bottom Line
This is a tactical truce, not a strategic reset. It buys 12 months of stability, reduces U.S. consumer costs by ~$60 billion, and secures supply chains for EVs, defense, and renewables. But core issues (tech rivalry, Taiwan, IP) remain unresolved.
