The White House has released details of a new trade agreement between U.S. President Donald Trump and Chinese President Xi Jinping, marking a major step toward easing the ongoing U.S.-China trade war. The deal, finalized in Busan, South Korea, includes tariff reductions, the suspension of Chinese export controls on rare earth minerals, and renewed agricultural purchases, extending a fragile trade truce for about a year.
Under the agreement, the U.S. will halve its 20% tariff on Chinese goods related to fentanyl precursor chemicals, lowering it to 10%. This move reduces the overall tariff rate on Chinese imports to approximately 47% from 57%. In exchange, China will pause its newly announced restrictions on exports of rare earth minerals, gallium, germanium, antimony, and graphite—critical materials for industries like defense, automotive, and technology.
Beijing will also suspend all retaliatory tariffs imposed since March, including those targeting key U.S. agricultural exports such as soybeans, corn, pork, and dairy products. Additionally, China agreed to lift non-tariff measures affecting American companies and terminate antitrust and anti-dumping investigations into U.S. semiconductor firms.
The U.S. will pause new export controls on Chinese technology companies and delay new port fees for Chinese-built and -flagged vessels for one year, helping stabilize global shipping routes.
A major component of the deal includes China’s commitment to purchase at least 12 million metric tons of U.S. soybeans by the end of 2025 and 25 million tons annually for the next three years, restoring trade flows that had been disrupted since 2024.
Both nations also pledged to cooperate on curbing the illegal fentanyl trade, with China agreeing to tighten controls on precursor chemicals. The agreement signals renewed diplomatic engagement between the world’s two largest economies and a pause in years of escalating trade tensions.