New economic and trade agreement between the US and China – full details
The agreement, officially named “Agreement on Economic and Trade Relations Between the United States of America and the People's Republic of China,” aims to halt the trade tensions that have escalated since March 2025 and restore stability to global trade, agriculture, and technology markets.
It includes parallel steps from both sides, designed to rebuild trust and renew economic flow between the world's two largest economies.
Chinese actions – unprecedented concessions
1️⃣ Rare earths and chip supply chain China will suspend the implementation of the new and expanded controls on rare earth exports announced on October 9, 2025. It will issue permanent general licenses for the export of metals such as gallium, germanium, antimony, and graphite, for the benefit of American companies and their suppliers worldwide.
What does this step mean?
Effective cancellation of export restrictions imposed in April 2025 and October 2022, which were critical in the chip, AI, and green energy industries.
2️⃣ Fight against fentanyl China will take “significant steps” to stop the flow of fentanyl to the US.
Among other things: Halting shipments of specific chemicals to North America. Increasing oversight of sensitive chemical exports to all destinations worldwide.
This is a step marked by Washington as a “strategic victory” in public health.
3️⃣ Agriculture and purchases from the US China will purchase at least 12 million metric tons of American soybeans in the last two months of 2025. In addition, it committed to purchasing 25 million tons of soybeans in each of the years 2026–2028. Also, imports of sorghum, cotton, hardwood, and other agricultural products from the US will resume.
The move is intended to directly support the American agricultural sector, which was harmed by the previous trade war.
4️⃣ Suspension of tariffs and reduction of retaliatory measures China will suspend all defensive tariffs announced since March 4, 2025.
What does this include?
- American agricultural products (chicken, beef, pork, wheat, corn, soybeans, fruits, and vegetables). Industrial and energy products.
China will suspend or remove non-tariff measures taken against the US — including the listing of American companies on “unreliable end-user” lists.
5️⃣ High-tech and chip industry China will ensure the resumption of trade and operations of Nexperia facilities, which produce older generation chips essential for global industry.
In addition, it will end anti-monopoly and anti-dumping investigations against American companies in the chip supply chain.
6️⃣ Shipping and logistics sector China will remove measures taken in response to the US Section 301 investigation into “Chinese control of maritime and logistics industries.” It will also remove sanctions on maritime entities that were on Chinese punitive lists.
American actions – significant concessions
1️⃣ Tariff reduction The US will reduce tariffs on imports from China by 10 percentage points, effective November 10, 2025. This is the largest reduction since the start of the trade war, signaling a return to open economic dialogue. In addition, existing reciprocal tariffs (10%) will be suspended until November 2026, for ongoing negotiations.
2️⃣ Extension of trade exclusions The validity of Section 301 tariff exclusions (which were set to expire in November 2025) will be extended for another year – until November 2026.
3️⃣ Regulatory and entity control relief. The US will suspend for one year the implementation of new “end-user” rules that were intended to restrict Chinese companies in the supply chain.
It will also suspend measures responding to the Section 301 investigation into Chinese control of shipbuilding, logistics, and maritime transport. Concurrently, it will renew historical cooperation with South Korea and Japan to rebuild the American shipbuilding industry.
Broad market implications
The agreement is expected to: Restore stability to the supply chains of chips, rare earths, and heavy industrial products. Lower global production costs and support accelerated investments in the technology sector. Provide a significant boost to the US agricultural sector, especially to Midwestern states. Reduce uncertainty in capital markets, particularly in sectors such as: chips, green energy, agriculture, and industry.
This is an agreement that turns back the clock – ending the official trade war between the US and China, and opening a new era of cautious economic cooperation, unprecedented in its depth and scope.