Trump and Xi Finalize Landmark Trade Agreement in South Korea

The White House has announced a groundbreaking trade agreement between U.S. President Donald Trump and Chinese President Xi Jinping, following their bilateral meeting in Busan, South Korea, on October 30, 2025. Described as a “massive victory” for both nations, this agreement aims to ease trade tensions between the world’s two largest economies and outlines significant commitments from both sides.

The newly established deal includes various measures such as reductions in U.S. tariffs and specific Chinese commitments regarding the export of fentanyl, rare earth elements, and agricultural products. According to a White House news release, the agreement is designed to “safeguard U.S. economic strength and national security while putting American workers, farmers, and families first.”

Key Provisions of the Agreement

Under the terms of the agreement, China has pledged to take substantial actions, including:

– Suspending new export controls on rare earth elements that had been announced on October 9.
– Issuing general licenses for the export of rare earths, gallium, germanium, antimony, and graphite.
– Implementing “significant measures” to reduce the flow of fentanyl precursor chemicals into the United States.
– Lifting all retaliatory tariffs imposed against U.S. agricultural products, particularly on soybeans, pork, corn, and dairy.
– Committing to purchase 12 million metric tons of U.S. soybeans by the end of the year and 25 million tons annually through 2028.

In addition, China will resume imports of U.S. sorghum and hardwood logs, as well as lift sanctions related to U.S. investigations into its maritime and logistics sectors.

In exchange, the U.S. has agreed to:

– Reduce tariffs on Chinese imports, originally imposed to address fentanyl issues, by 10 percentage points starting on November 10, 2025.
– Extend certain Section 301 tariff exclusions until November 10, 2026.
– Delay enforcement of a new export regulation targeting affiliates of blacklisted Chinese firms until November 10, 2026.
– Suspend new trade actions linked to investigations of China’s shipbuilding and logistics sectors until late 2026.

Implications for U.S.-China Relations

The White House has framed this agreement as part of a series of “historic wins” during President Trump’s recent trip to Asia. In addition to the U.S.-China deal, Trump secured new trade agreements with Malaysia and Cambodia, and established negotiation frameworks with Thailand and Vietnam. The trip also resulted in expanded investment commitments from both Japan and South Korea.

“This trade and economic deal caps President Trump’s successful trip to Asia, where he delivered a series of historic wins for the American people,” the White House stated.

The announcement comes at a time when U.S.-China relations have been under scrutiny, particularly regarding trade imbalances and tariffs. The agreement is expected to have far-reaching effects on both economies, potentially stabilizing trade flows and fostering cooperation in key sectors.

As the details of this agreement unfold, stakeholders across various industries will be closely monitoring its implementation and any subsequent impacts on global trade dynamics.