Washington, D.C. — President Donald J. Trump and Chinese President Xi Jinping have reached a far-reaching trade and economic agreement aimed at rebalancing U.S.–China relations, strengthening American economic security, and addressing longstanding disputes over technology, agriculture, and illicit drug precursors. The accord, finalized this week during Trump’s visit to the Republic of Korea, is described by U.S. officials as a “massive victory” for American workers, farmers, and manufacturers.
Under the agreement, China will halt the export of chemical precursors used to make fentanyl, suspend newly imposed export controls on rare earth elements, and end retaliatory tariffs on a wide range of U.S. agricultural goods. Beijing has also pledged to purchase at least 12 million metric tons of American soybeans before year’s end and 25 million tons annually through 2028. In addition, China will remove sanctions and investigations targeting U.S. semiconductor firms, resume trade from Nexperia’s Chinese facilities, and lift restrictions on companies listed under its “unreliable entity” designations.
The deal also commits China to suspend export curbs on gallium, germanium, graphite, and antimony, materials critical to U.S. electronics and defense industries, by issuing general licenses for American end users. These measures effectively roll back restrictions announced in 2022 and 2025.
In exchange, the United States will reduce by 10 percentage points certain tariffs originally imposed to counter fentanyl-related trade, extend Section 301 tariff exclusions through November 2026, and pause for one year the implementation of new export-control rules and retaliatory maritime trade actions. Washington will continue negotiating under Section 301 while coordinating with Japan and South Korea on shipbuilding and logistics security.
The announcement concludes Trump’s multination trip through Asia, where he also signed reciprocal trade agreements with Malaysia and Cambodia, advanced new trade frameworks with Thailand and Vietnam, and secured critical-minerals cooperation accords with Thailand, Malaysia, and Japan. In Tokyo, Trump highlighted Japan’s expanded $550 billion investment in the U.S. industrial base and new purchases of American energy.
The White House said the series of agreements demonstrate a broader strategy to rebuild U.S. manufacturing, expand market access for farmers, and counter strategic dependencies on foreign supply chains.
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