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On October 29th, Donald Trump and Xi Jinping met in Busan, South Korea, and announced that the U.S. would reduce tariffs on imports from China, cutting some duties from 20% to 10%, and lowering the overall average duty on Chinese goods from around 57 % down to 47 %.

For businesses engaged in importing from China, this tariff shift presents a big window of opportunity. In this post we will break down what both countries agreed to and how you can take advantage of the agreement they made.

What is Included in the Deal

  1. Fentanyl Tariff

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    Chinese fentanyl precursor materials have been sold to many Mexican organizations that end up being processed into fentanyl and makes their way into the U.S. Trump had instituted a 20% tariff on China. With the deal made between the two countries, that tariff is being reduced to 10%. In this deal, China agreed to work “very hard to stop the flow” of those chemicals.

  2. Expansion of Agricultural Purchases

    China also committed to resume large purchases of U.S. agricultural products including soybeans, sorghum and other crops. They have agreed to buy 25 million metric tons annually over the next three years.

  3. Pause on Chinese Rare-Earth Export Controls

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    Earlier this month, China announced they were adding several rare earth minerals to their restricted controls list. This meant that any shipment of a product having any trace of these rare earth minerals would have to be approved by the Chinese government before being allowed to ship.

    China agreed to suspend the new export restrictions on rare-earth minerals for one year. Rare earth minerals are vital to electronics, defense, and high-tech manufacturing, and so is access to them.

  4. Stabilization of U.S.–China Trade Relationship

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    The deal signals a de-escalation of the trade war which has only escalated over the last year. This is the first step to a more stable trade climate between the two countries.

    For companies sourcing from China, the tariff reduction represents a window of opportunity. Companies can capitalize on the lower tariffs before the Chinese New Year and the shipping costs that go up by ordering now.

The latest U.S.–China agreement marks a pivotal moment for importers and manufacturers navigating international trade. With tariffs lowered and relations stabilizing, now is the time to reassess your sourcing strategy and capitalize on reduced costs.

At Global Trade Specialists, we help businesses like yours understand the impact of these changes, optimize product sourcing, and improve profitability. If you’d like personalized insight into how this deal affects your industry, contact us today for a consultation and let’s build your next move together.