Trump, Xi Strike Landmark US–China Trade Deal with Mutual Bend

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In a sweeping economic agreement announced during US President Donald J. Trump’s visit to South Korea, Washington and Beijing reached a historic accord easing trade tensions, reopening agricultural markets, and tackling fentanyl trafficking — marking a major realignment in global trade relations.

By TRH Foreign Affairs Desk

New Delhi, November 1, 2025 — The White House announced a landmark US–China trade and economic agreement following President Donald J. Trump’s meeting with Chinese President Xi Jinping in the Republic of Korea this week — a deal that both sides hailed as a “massive victory” for stability, market access, and national security.

According to the White House Fact Sheet, the accord represents a significant rebalancing of the world’s most consequential trade relationship, securing commitments from Beijing on critical minerals, agriculture, and the flow of precursor chemicals used in fentanyl production.

Key Chinese Commitments

China agreed to halt the flow of fentanyl precursors to the United States, a move long sought by US law enforcement and public health officials. In addition, Beijing will suspend export controls on rare earth elements and related materials, including gallium, germanium, graphite, and antimony — effectively reopening critical supply chains for global industries.

Other measures include:

Suspension of retaliatory tariffs on US agricultural exports such as soybeans, pork, corn, and dairy.
Termination of investigations targeting US semiconductor firms and technology companies.
Commitment to purchase 12 million metric tons of US soybeans in 2025, and at least 25 million tons annually from 2026 through 2028.
Resumption of trade from Nexperia’s Chinese facilities, supporting global chip supplies.

China will also extend tariff exclusions on US imports through the end of 2026, providing stability to American exporters and manufacturers.

US Concessions

In return, the United States will lower tariffs on select Chinese imports by 10 percentage points, effective November 10, 2025, while maintaining a 10% reciprocal rate through November 2026. Washington will also pause enforcement actions under Section 301 related to China’s maritime and logistics sectors and extend tariff exclusions for another year.

The agreement temporarily suspends the implementation of new end-user controls and opens a one-year negotiation window with China, maintaining coordination with allies Japan and South Korea to strengthen shipbuilding and technology partnerships.

A Diplomatic and Economic Win

The deal capped Trump’s multi-nation Asia tour, during which he signed reciprocal trade agreements with Malaysia and Cambodia, initiated trade frameworks with Thailand and Vietnam, and deepened critical minerals cooperation with Japan and Malaysia.

In Japan, Trump announced projects tied to Tokyo’s $550 billion investment commitment in the US and secured major energy purchase deals. In South Korea, he clinched billions in new investments aimed at job creation, maritime cooperation, and technology leadership.

“This historic agreement safeguards US economic strength and national security while putting American workers, farmers, and families first,” the White House said.

The Broader Impact

Economists say the deal could ease global trade tensions while strengthening US supply chains for semiconductors and clean energy materials. Analysts also view the fentanyl provisions as a major diplomatic breakthrough linking trade to public health security.

As Trump’s team frames it, this is more than a trade pact — it’s a strategic recalibration designed to secure America’s economic future and maintain its industrial edge in an era of great-power competition.

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