U.S. and China Reach Landmark Trade Deal (CBP Guidance Available)

Trade Update • Nov. 3, 2025 | Updated Nov. 8, 2025

Key Points

• China agreed to suspend its global export controls on rare earths, gallium, germanium, and other critical minerals.
• Beijing committed to halting fentanyl precursor exports to the U.S. and tightening global controls on related chemicals.
• All retaliatory Chinese tariffs and non-tariff actions against U.S. goods and companies will be suspended or removed.
• China will resume large-scale purchases of U.S. agricultural products, including at least 12 million metric tons of soybeans by the end of 2025.
• The U.S. will lower certain tariffs and suspend select Section 301-related actions for one year while continuing negotiations.
• On Nov. 4, 2025, an Executive Order reduced the additional IEEPA ad valorem duty on Chinese imports related to the synthetic opioid supply chain from 20% back to 10%, effective Nov. 10, 2025.
• Another Nov. 4 EO was issued continuing the suspension of heightened reciprocal tariffs on Chinese imports until November 10, 2026.
• Latest: A CBP guidance issued on Nov. 7, 2025 clarifies the updated tariff rates and confirms the suspension of reciprocal tariffs until November 10, 2026, and the reduction of fentanyl-related tariffs to 10%.

During the Asia‑Pacific Economic Cooperation (APEC) meeting in the Republic of Korea, President Donald J. Trump and President Xi Jinping reached a historic trade and economic deal which aims to rebalance U.S.-China relations. The deal strengthens American economic security, opens new markets for U.S. producers, and reinforces cooperation on critical global issues such as supply chain stability and narcotics control.

On November 4, 2025, the White House issued an Executive Order reducing tariffs on Chinese imports tied to the synthetic opioid supply chain, and another EO formalizing the agreement with continued tariff suspensions.

Latest Update. A CBP guidance issued on Nov. 7, 2025 clarifies these updates, confirming the suspension of reciprocal tariffs until November 10, 2026, and the reduction of fentanyl-related tariffs to 10%.

More details on the EOs and the CBP guidance can be found at the end of this update.

China’s Commitments

Suspension of Export Controls

China will suspend its expansive export controls announced in October 2025 and issue general licenses for exports of rare earths, gallium, germanium, antimony, and graphite. These steps effectively remove restrictions first imposed in 2022 and expanded earlier this year, restoring access for U.S. end users and global supply chains.

Action on Fentanyl Precursors

Beijing will take concrete measures to end the shipment of chemicals used to produce fentanyl into the U.S. Specific chemicals will be restricted from export to North America and closely controlled in all global markets.

Removal of Retaliatory Tariffs

China will suspend all retaliatory tariffs imposed since March 2025, covering a broad range of U.S. agricultural and food exports, including soybeans, corn, wheat, pork, beef, fruits, and dairy products.

Resumption of U.S. Agricultural Purchases

China will purchase at least 12 million metric tons of U.S. soybeans by the end of 2025 and at least 25 million metric tons annually through 2028. It will also resume imports of U.S. sorghum and hardwood logs, providing strong support to American farmers.

Support for Semiconductor Supply Chains

China will ensure that production from Nexperia’s facilities continues, allowing global access to critical legacy chips. It will also end antitrust and anti-dumping investigations targeting U.S. semiconductor firms.

Termination of Retaliatory Measures

Beijing will remove sanctions and non-tariff countermeasures implemented in response to the U.S. Section 301 investigation into China’s shipbuilding and logistics sectors. It will also extend market-based tariff exclusions on U.S. imports through December 31, 2026.

U.S. Actions

Tariff Adjustments

The U.S. will lower IEEPA tariffs on Chinese imports previously imposed to address fentanyl-related trade concerns by removing 10 percentage points from the cumulative rate, effective November 10, 2025.

Extension of Tariff Exclusions

Washington will extend existing Section 301 tariff exclusions from November 29, 2025, to November 10, 2026, maintaining trade flexibility while ongoing negotiations continue.

Suspension of Certain Regulatory Measures

The U.S. will suspend for one year the enforcement of the interim rule on end-user controls and delay actions related to the Section 301 investigation on China’s maritime and shipbuilding dominance.

Continued Regional Coordination

The U.S. will maintain close cooperation with the Republic of Korea and Japan to strengthen American shipbuilding, technology, and critical minerals supply chains.

Additional Agreements

President Trump’s trip to Asia yielded additional agreements:

• Malaysia and Cambodia: Signed reciprocal trade agreements advancing bilateral market access.
• Thailand and Vietnam: Established frameworks for future trade negotiations.
• Japan: Expanded cooperation on critical minerals, secured major energy purchases, and confirmed Japan’s $550 billion U.S. investment initiative.
  Republic of Korea: Secured billions in new investments supporting U.S. jobs, energy, and maritime innovation.

Nov. 4 Executive Orders

On November 4, 2025, the White House issued an Executive Order reducing tariffs related to the synthetic opioid supply chain in China. The order lowers the additional ad valorem duty on Chinese imports from 20 percent to 10 percent, effective 12:01 a.m. Eastern Standard Time on November 10, 2025.

Under the order, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified as follows:

• Heading 9903.01.24 is amended to replace “20%” with “10%” and remove references to U.S. note 2(w).
• Subdivision (u) of U.S. note 2 is amended to replace “20%” with “10%” and update the effective date from March 4, 2025, to November 10, 2025.

The Executive Order also directs the Secretary of Homeland Security, in consultation with other officials, to monitor China’s implementation of these commitments and recommend further actions if necessary.

Additionally, on the same day, the White House issued another EO formalizing the U.S.-China trade agreement. The order continues the suspension of tariffs under Heading 9903.01.63 and subdivision (v)(xvii)(10) of U.S. note 2 to Subchapter III of Chapter 99 of the HTSUS until November 10, 2026.

Latest Update: CBP Guidance Issued Nov. 7

Following the Nov. 4 EOs, a CBP guidance issued on November 7, 2025, clarifies the updated tariff rates for products from China, including those from Hong Kong and Macau. The guidance, in line with the EOs, confirms the suspension of certain reciprocal tariffs until November 10, 2026, and outlines the reduced ad valorem duty from 20% to 10% for goods related to the synthetic opioid supply chain, effective November 10, 2025.

The guidance also specifies that:

• Imports subject to the fentanyl-related tariff must be reported under HTSUS 9903.01.24, covering all products of China and Hong Kong except those classifiable under headings 9903.01.21–9903.01.23 and items for personal use included in accompanied baggage of persons arriving in the United States.
• Imports subject to the reciprocal tariff must be reported under HTSUS 9903.01.25, excluding products in headings 9903.01.26–9903.01.33, 9903.02.02–9903.02.71, and 9903.96.01.

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