US and China Reach Trade Concessions Following Trump-Xi Meeting: Outcomes and Implications

The US and China have agreed to cut tariffs, suspend rare earth export restrictions, and pause port fees following a meeting between President Trump and President Xi in Busan, South Korea. The agreement reached during the Trump-Xi meeting – largely finalized during talks between US and Chinese officials in Kuala Lumpur earlier in the week – provides temporary relief for businesses and lays the groundwork for further negotiations. It also signals a shift toward a more stable and institutionalized framework for managing economic relations between the two countries.

UPDATE (November 10, 2025): Between November 7 and November 10, 2025, China’s Ministry of Commerce (MOFCOM) released several notices suspending a range of tariffs, export controls, and port fees, officially confirming details of the agreement reached with the US following the Xi-Trump meeting in Busan. The notices include a one-year suspension of the rare earth export controls announced on October 9, as well as other export controls on items related to lithium-ion battery materials and superhard materials. In a separate announcement issued on November 9, MOFCOM also suspended a ban on exports of certain dual-use items related to gallium, germanium, antimony, and superhard materials to the US until November 27, 2026. This ban was initially imposed in late 2024.

Additionally, both the US Trade Representative (USTR) and China’s Ministry of Commerce (MOFCOM) issued announcements on November 9 and 10 officially suspending the implementation of port fees on vessels from the other country for one year, starting November 10, 2025.

UPDATE (November 5, 2025): MOFCOM announced it will remove 31 American companies from its export control list and 10 from its unreliable entities list, effective November 10, 2025. MOFCOM will also suspend the inclusion of 11 additional US drone and defense firms on the unreliable entities list, which include Skydio Inc., BRINC Drones Inc., and Red Six Solutions, for one year from November 10, 2025.

The removals restore the ability of Chinese exporters to apply for permits to sell dual-use items to these firms and allow domestic companies to resume business dealings with them. MOFCOM also said it will lift anti-circumvention duties of 33.3–78.2 percent on certain US-origin fiber-optic cables imposed in September 2025, effective November 10.

UPDATE (November 5, 2025): China’s State Council Tariff Commission confirmed it will roll back tariffs on a range of US agricultural products beginning November 10, 2025. The 15 percent tariff on US-origin chicken, wheat, corn, and cotton will be removed, along with the 10 percent tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy. China will also extend the suspension of the 10 percent “reciprocal” tariff rate negotiated with the US in May for one year.

These actions are in line with details previously outlined by the White House, including reciprocal tariff reductions and the US rollback of the additional 10 percent “fentanyl” tariff. However, the announcement did not confirm other White House claims, such as new general export licenses for rare earths or increased soybean purchases.

UPDATE (November 1, 2025): China has agreed to issue general export licenses for rare earths and other critical materials and to resume large-scale US soybean purchases, according to the White House, though many details – such as how quickly licenses will be issued and how broadly they will apply – remain unconfirmed. While China has effectively said that it will suspend the retaliatory tariffs and non-tariff countermeasures imposed since March 2025, other commitments that the White House claims China has agreed to, including restoring exports from Nexperia’s China facilities, extending tariff exclusions, and ending investigations into US firms, have also not been explicitly confirmed. By contrast, the US actions outlined in a White House Fact Sheet had already been confirmed by China’s Ministry of Commerce following the meeting, including fentanyl-related tariff cuts, extensions of Section 301 exclusions, and suspensions of the Entity List affiliate rule and port fees, all of which will take effect on November 10, 2025. Significant uncertainty remains over to which China will implement the broader set of actions attributed to it.

China and the US have reached a “consensus” following a long-awaited meeting between President Donald Trump and President Xi Jinping at the sidelines of the APEC summit in Busan, South Korea.

Shortly after the meeting, Trump reportedly said that China had agreed to work with the US to stop fentanyl entering the country, that the rare earth issue had been “settled”, and that the US would lower tariffs on Chinese goods from 57 percent to 47 percent. In a post on Truth Social, he also claimed that China had agreed to “purchase of massive amounts of Soybeans, Sorghum, and other farm products” from the US.

A readout from the Chinese Ministry of Foreign Affairs (MFA) stated “the two teams had an in-depth exchange of views on important economic and trade issues, and reached consensus on solving various issues”, and that they should “finalize the follow-up steps as soon as possible”. On October 30, shortly after the meeting, China’s Ministry of Commerce (MOFCOM) confirmed some of the details of the agreement, including the tariff reductions, suspensions on the rare earth export controls and port fees, and collaboration on fentanyl and agricultural imports.

Trump also stated that he would visit China in April next year, which was confirmed in the MFA meeting readout.

Read more: US-China Relations in the Trump 2.0 Era: A Timeline

What did Trump and Xi agree to?

According to the MOFCOM statement, the main achievements and consensus reached – negotiated during meetings between US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng in Malaysia earlier in the week – are as follows:

• Tariff adjustments: The US will reduce the so-called “fentanyl” tariff from 20 percent to 10 percent on Chinese goods (including those from Hong Kong and Macao), canceling the 10 percent hike imposed in March 2025. It will also extend the 10 percent “retaliatory” tariff rate for another year, suspending the additional 24 percent rate initially imposed in April. In response, China will adjust its countermeasures, and both sides agreed to extend certain tariff exemptions.
• Export control suspensions: The US will suspend its “50 percent ownership rule”, announced on September 29, for one year. China will reciprocate by suspending its own rare earth export control measures announced on October 9 and will refine its implementation plan.
• Port fee suspensions: The US will pause port fees charged to Chinese vessels docking at US ports for one year, while China will suspend its corresponding countermeasures on US vessels.
• Agriculture purchases, fentanyl cooperation, and TikTok deal: The two sides also reached consensus on cooperation on fentanyl controls, expanding agricultural trade, and resolving specific corporate cases. They reaffirmed the outcomes of the Madrid consultations, with the US making positive commitments in investment-related areas and China pledging to work constructively on issues related to TikTok.

Meanwhile, a White House Fact Sheet issued on November 1 included a broader range of concessions, in particular on the part of China. Notably, the Fact Sheet states that China has agreed to issue general export licenses for rare earths, gallium, germanium, antimony, and graphite, which it claims means the “de facto removal of controls China imposed in April 2025 and October 2022”. This is in addition to the one-year suspension of the rare earth export controls announced on October 9, 2025, as was confirmed in a notice by the Chinese Ministry of Commerce (MOFCOM) following the meeting last week.

In addition, the White House stated that China had agreed to purchase at least 12 million metric tons (MMT) of US soybeans in November and December 2025, as well as at least 25 MMT each in the years 2026, 2027, and 2028. This part of the deal has also not yet been confirmed by the Chinese side – the MOFCOM notice only stated that the two sides will “expand agricultural trade”.

The Fact Sheet also outlined a range of other actions that it says China has agreed to, not all of which were explicitly confirmed in the MOFCOM notice released last week.

At the same time, the Fact Sheet outlined the following actions that the US has agreed to take in response, all of which were confirmed in the MOFCOM notice:

Without official confirmation from the Chinese side on many of the details, it is unclear whether and to what extent these concessions will be carried out. However, the confirmation of the exact dates of the tariff and port fee suspensions provides clarity and will allow companies to adjust expectations based on the new rates.

Understanding the latest agreements

Fentanyl tariffs

On February 1, 2025, Trump signed an executive order imposing an additional 10 percent tariff on all Chinese goods entering the country, ostensibly to hold China accountable for its promises of stopping fentanyl and precursor chemicals from flowing into the US, per a White House Fact Sheet.

On March 3, 2025, through another executive order, Trump raised this tariff rate to 20 percent, alleging that China “has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions”. The 20 percent tariff rate took effect on March 4, 2025.

The new agreement to “cancel the additional 10 percent ‘fentanyl-related tariffs’ on Chinese goods” means that the fentanyl tariff on Chinese goods will be reduced from 20 percent back to 10 percent. This brings the effective tariff rate on Chinese goods down from 57 percent to 47 percent.

On November 5, China’s State Council Tariff Commission confirmed it is removing tariffs placed on American goods announced in March 2025 in retaliation for tariffs on Chinese goods by the Trump administration. Under the new agreement, the following tariffs will be removed starting November 10, 2025:

• The 15% tariff on US-origin chicken, wheat, corn, and cotton.
• The 10% tariff on US-origin sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.

In its October 30 statement, MOFCOM confirmed that the two sides had “reached consensus on issues such as fentanyl control cooperation”, but provided no more details. Trump, writing on Truth Social, stated that “Very significantly, China has strongly stated that they will work diligently with us to stop the flow of Fentanyl into our Country. They will help us end the Fentanyl Crisis”.

24 percent retaliatory tariffs

On April 2, 2025 – the so-called “Liberation Day” – Trump announced a 34 percent “reciprocal” tariff on Chinese goods, which took effect on April 9. In the days that followed, the tariff rate surged dramatically – rising to 84 percent on April 8 and then to 125 percent on April 9 – after China responded with retaliatory measures.

In May 2025, following meetings in Geneva, the two sides agreed to reduce their reciprocal tariff rates to 10 percent for a 90-day period. This was extended for another 90 days on August 12, 2025, meaning the reduced rate was set to expire and return to 34 percent on November 10, 2025.

Under the new agreement reached in Kuala Lumpur, the additional 24 percent retaliatory tariff will be suspended for one year. This means the so-called “Liberation Day tariffs” on Chinese goods will continue at the reduced 10 percent rate until November 9, 2026.

This agreement was confirmed by both the White House and the State Council Tariff Commission, which issued a notice on November 5 officially extending the tariff suspension.

Read more: Breaking Down the US-China Trade Tariffs: What’s in Effect Now?

China’s export controls on rare earths and critical minerals

On October 9, 2025, MOFCOM announced a sweeping expansion of its export controls on rare earth materials, technologies, and dual-use items. Under the new measures, export restrictions on an additional five rare earth elements (REEs) were set to come into effect on November 8, 2025. More significantly, China’s updated rare earth export controls included extraterritorial provisions, requiring export licenses for products made outside China if they contain Chinese-origin materials or are produced using Chinese technologies. This extraterritorial expansion of jurisdiction marked a significant escalation in scope and was expected to have broad implications for global supply chains, particularly in sectors reliant on Chinese inputs or know-how.

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The initial MOFCOM statement said that China has agreed to suspend these export control measures and “study and refine specific plans”. In a notice issued on November 7, MOFCOM confirmed the suspension of the October 9 rare earth export controls for one year until November 10, 2026. The suspension applies both to the export controls on the additional five REEs and the wider restrictions on the export of rare earth materials and technologies, including items produced overseas using Chinese source materials and technologies.

It is important to note that the agreement only applies to the rare earth export controls announced on October 9, not the previous controls implemented in April. These controls – impacting seven REEs and their derivative products – remain in place, meaning companies that need to export these controlled items will need to apply for an export license from MOFCOM, a process that can significantly delay shipments. While the White House claimed in the Fact Sheet has previously stated that China has also agreed to issue general purpose export licenses for rare earth items on the previous export control list implemented on April 4, 2025, the Chinese side has yet to confirm this and these controls remain in place at the time of writing.

At the same time, the White House Fact Sheet also asserted that China has agreed to issue general export licenses for rare earths, gallium, germanium, antimony, and graphite, amounting, in the US view, to a “de facto removal” of controls from April 2025 and October 2023. While China has yet to suspend the April 4 REE export controls or confirm it will issue general purpose licenses, in the same notice suspending the October 9 REE export controls, it also announced a one-year suspension of export controls on the following items:

• Super hard materials and related items, including synthetic diamond products and DCPCVD equipment;
• A range of rare earth production and processing equipment, as well as items related to rare earth raw materials and auxiliary materials; and
• Items related to Lithium-ion battery materials, cathode materials, and graphite anode materials.

In a separate notice, it also granted a one-year suspension of a ban on exports of dual-use items related to gallium, germanium, antimony, and superhard materials to the US until November 27, 2026.

The one-year suspension of export controls on critical minerals and technologies represents a substantial, albeit temporary, easing of restrictions for global companies. However, this approach does not exactly align with the claims from the White House that China would issue general-purpose licenses for these materials, and the temporary suspension gives China the option to reinstate them in a year’s time if relations have not fully stabilized by then.

Moreover, without confirmation from the Chinese side, questions remain regarding how – and if – the general REE export licenses will be issued, as well as how long they will remain valid, how easy they will be to renew, and whether entities with defense-related ties will be eligible.

Given the strategic importance of REEs, particularly in high-tech and defense industries, it remains unlikely that China will fully relinquish its leverage over these exports. A more calibrated and targeted approach is more probable, balancing domestic strategic priorities with the more cooperative tone emerging from recent US-China consultations.

Suspension of port fees on Chinese and US vessels

The suspension of the US’s port fees implemented under Section 301 of the US Trade Act marks a pause in a months-long escalation between Washington and Beijing over the maritime, logistics, and shipbuilding industries.

The Section 301 investigation that led to the recent imposition of port fees on Chinese vessels docking at US ports was first launched in April 2024 under the Biden administration. It examined China’s efforts to dominate the maritime, logistics, and shipbuilding sectors through what the US described as unfair, non-market practices. The investigation findings, released in January 2025, concluded that these practices were “unreasonable”, paving the way for potential trade actions.

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On April 9, Trump signed an executive order declaring it the policy of the US “to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity”. The order noted that the US builds less than one percent of the world’s commercial ships, while China produces roughly half, and directed the US Trade Representative (USTR) to enforce appropriate restrictions, fees, or duties in response.

In line with that directive, the USTR announced later in April that it would impose new fees on Chinese vessels docking at American ports. In the first phase of the measures, lasting 180 days from April 17, a US$0 fee was applied, after which fees would rise incrementally over the following three years.

On October 3, 2025, the US Customs and Border Protection (CBP) issued detailed guidance on implementing those fees, which took effect on October 14. Under the new rules, Chinese-owned or operated vessels were to be charged US$50 per net ton (NT), while Chinese-built vessels faced a fee of US$18 per NT or US$120 per container discharged, whichever was higher. Vehicle carriers and roll-on/roll-off ships were also subject to a separate fee. These rates were scheduled to rise annually to a high of US$33 per NT or US$250 per container for Chinese-built vessels in 2028.

Beijing swiftly condemned the measures, with MOFCOM arguing that the new fees violated international trade principles and the bilateral maritime agreement between the two countries. In retaliation, China announced on October 10, 2025, that it would introduce its own “special port service fees” on US-owned, US-operated, and US-built vessels, mirroring the US implementation timeline and increasing in stages from RMB 400 (about US$56) per NT in October 2025 to RMB 1,120 (about US$157) per NT by 2028.

The dueling measures, which took effect simultaneously on October 14, heightened tensions between the two countries and raised concerns among global shipping and logistics operators. Against this backdrop, the recent agreement to suspend the fees marks a significant, if temporary, de-escalation in the dispute.

Expanding agricultural trade

In a post on Truth Social, Trump stated that he was “extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of soybeans, sorghum, and other farm products”.

The White House Fact Sheet issued on November 1 provided further details, stating that China had agreed to purchase at least 12 million metric tons (MMT) of US soybeans in November and December 2025, as well as at least 25 MMT each in the years 2026, 2027, and 2028. This part of the deal has also not yet been confirmed by the Chinese side – the MOFCOM notice only stated that the two sides will “expand agricultural trade”.

The MOFCOM statement is less clear about exactly what has been agreed with regard to agricultural purchases, stating simply that the two sides would “expand agricultural trade”.

Chinese purchases of American agricultural products – in particular soybeans – have been a core point of friction in US-China trade relations over the past decade. The US has historically been a major exporter of soybeans to China: in the seven years preceding the US-China trade war, China’s imports of American soybeans accounted for an average of 28 percent of the US’s total soybean production and 60 percent of total exports, according to the American Soybean Association.

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In March, in retaliation for the fentanyl tariffs, China placed a 10 percent tariff on US soybeans. Since the US introduced the retaliatory tariffs in early April, China has effectively boycotted American soybeans, making no purchases since May.

The trade war launched during Trump’s first term was partially settled by an agreement for China to increase its purchases of US agricultural products as part of the Phase One trade deal. However, according to the PIIE, China purchased only 58 percent of the amount of goods it had committed to in the period from 2020 to 2021, meaning it fell short of the additional US$200 billion in purchases committed to. The US also recently launched a Section 301 investigation into China’s implementation of the deal.

Without further details on an agreement, it remains unclear how much China will increase imports of soybeans and other agricultural products from the US. According to reporting from Reuters, China bought three US soybean cargoes shortly before the Xi-Trump meeting, suggesting Trump’s hopes may come to fruition. These will be the first Chinese purchases of US soybeans from this year’s harvest.

However, the total scale of the planned shipments – about 180,000 MT for December and January – is still exceedingly small, and China has almost completed bookings from Argentina and Brazil for November. According to traders speaking to Reuters, China still needs to import about 5 MMT of shipments for December and January, but Chinese buyers will prefer Brazilian soybeans due to their higher protein content.

The US soybean export season runs from October to January, meaning US farmers may soon lose the opportunity to sell their products to China this year.

TikTok divestiture

China’s confirmation that it will “work with the US to properly resolve issues related to TikTok” follows a series of developments in September 2025 surrounding the app’s US operations.

On September 19, Trump and Xi held a phone call in which both sides signaled progress toward a framework to address US national security concerns over TikTok. The call laid the groundwork for a potential agreement allowing the app to continue operating in the US under new ownership and oversight conditions.

Three days later, on September 22, White House officials revealed details of a proposed deal under which a US joint venture – comprising Oracle, private equity firm Silverlake, and a group of American investors – would take control of TikTok’s US business. Chinese officials did not confirm the arrangement but said they welcomed “productive commercial negotiations” that complied with both countries’ laws.

On September 25, President Trump signed an executive order approving the divestiture of TikTok’s US operations. The order formally designated the arrangement a “qualified divestiture” under the 2024 divest-or-ban law. It set out that ByteDance would retain less than 20 percent ownership in a new US-based joint venture controlling TikTok’s American operations, algorithms, and content moderation systems. US data would be stored domestically under American oversight, with “trusted security partners” monitoring software updates and data flows.

While Washington described the deal as meeting US national security requirements, China has yet to formally agree to the deal. Chinese media reports released at the time suggested ByteDance might retain certain control elements. However, these were later removed, indicating that the agreement remained subject to government approval. MOFCOM’s recent statement marks the first formal acknowledgment from China that it is prepared to cooperate in resolving the issue.

Implications of the Trump-Xi meeting and what to watch

The Trump-Xi meeting marked a turning point in China-US trade relations under Trump’s second term, offering businesses some respite from the tensions. The suspension and reduction of tariffs across key sectors will help stabilize bilateral trade flows and ease cost pressures. This is especially beneficial for export-oriented companies that rely heavily on cross-border supply chains.

While many of the measures are temporary, the current pause in tariff escalation opens the door for future talks – as shown by Trump’s planned visit to China next year – laying the groundwork for a more definitive and long-term agreement and a normalized trading environment.

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The delay of rare earth export controls provides significant breathing room for the vast array of industries worldwide that rely on Chinese input materials and technologies for their manufacturing. Importantly, the suspension covers the extraterritorial jurisdiction of the export controls, meaning production occurring outside of China will no longer be affected.

However, some export controls remain in place and appear unlikely to be entirely removed. This means businesses will need to continue adapting to the “new normal” of export licenses while supply chains adjust. Moreover, the risk of further escalation in sensitive sectors like semiconductors, AI, and quantum computing remains, as both the US and China continue to prioritize strategic competition and national security.

The suspension of port fees on Chinese and US vessels – one of the easier concessions for both sides to make – offers a practical cooling-off period in the trade dispute. For Chinese firms operating in the US maritime and port-related sectors, the pause provides greater predictability after months of uncertainty. It also reduces pressure on shipping and logistics operations, supporting stability in global trade flows.

This article was originally published on October 30, 2025, and last updated on November 10, 2025.

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