Key Takeaways
- Fentanyl Flow Halted: China agreed to stop the export of chemicals used to make fentanyl and enforce strict global controls, a move aimed at cutting off a major source of America’s deadly opioid crisis.
- Tariffs Trimmed, Agriculture Booms: In exchange for action on fentanyl and rare earths, the U.S. will lower certain tariffs while China suspends all retaliatory tariffs and resumes massive purchases of U.S. soybeans, meat, and other agricultural goods.
- Securing Supply Chains and National Strength: Beijing’s suspension of rare earth export controls and reversal of tech restrictions gives U.S. industries critical breathing room—reinforcing economic independence and bolstering American manufacturing power.
President Donald Trump capped his Asia trip with yet another headline-making victory: a sweeping trade and economic agreement with China that rebalances relations and reinforces America’s economic strength. The deal, reached in South Korea during face-to-face talks with Chinese President Xi Jinping, marks a breakthrough in trade, national security, and agricultural diplomacy — all without giving up an inch of American leverage.
The agreement delivers major wins for U.S. farmers, manufacturers, and consumers. China agreed to halt the flow of fentanyl precursors into the United States, lift all retaliatory tariffs on American goods, and resume large-scale agricultural purchases — including at least 12 million metric tons of U.S. soybeans by year’s end and 25 million tons annually through 2028. Beijing will also remove restrictions on key imports like pork, beef, chicken, and dairy, giving America’s heartland an immediate shot in the arm.
Just as importantly, China will suspend its export controls on rare earth elements — materials critical to everything from fighter jets to smartphones — a major relief for U.S. industries that depend on secure mineral supply chains. Beijing also pledged to drop retaliatory investigations targeting U.S. semiconductor firms and restore production at Nexperia facilities, helping stabilize the global chip market.
In return, the United States will lower certain tariffs related to fentanyl enforcement by 10 percentage points, keeping a baseline 10% reciprocal tariff in place while continuing negotiations. Washington also agreed to pause new restrictions on Chinese firms for one year, a move designed to give diplomacy room to work while maintaining American dominance in technology and shipbuilding.
“This is a massive win for America’s farmers, workers, and manufacturers,” a senior Trump administration official said, noting that the agreement strengthens both economic stability and national security.
The China deal rounds out Trump’s Asia tour, which also produced billions in new energy, technology, and manufacturing investments from Japan, Malaysia, and South Korea. It’s another example of the Trump doctrine in action — peace through strength, prosperity through negotiation, and American exceptionalism leading the global stage once again.