Trump seals historic US-China trade deal in Seoul; full details emerge

New Delhi: In a landmark breakthrough amid escalating global trade frictions, US President Donald J. Trump has struck a comprehensive economic and trade agreement with Chinese President Xi Jinping during high-stakes talks in the Republic of Korea. 

The deal, hailed by the White House as a "massive victory" for American workers, farmers, and national security, promises to curb the flow of deadly fentanyl precursors, unlock China's stranglehold on critical minerals, and revive billions in agricultural exports, potentially averting a deeper US-China economic standoff.

Announced late Friday from the White House, the pact caps Trump's whirlwind Asia tour and marks a pivotal de-escalation following months of tit-for-tat tariffs and export curbs. 

"This historic agreement puts American families first, rebalancing trade while safeguarding our economic strength," the White House Fact Sheet declared, emphasizing commitments that could inject stability into volatile supply chains for semiconductors, energy, and agriculture.

Key Chinese concessions: 

A floodgate for US exports and security

Under the deal, Beijing has pledged sweeping actions to address longstanding US grievances:

Fentanyl crackdown: China will halt shipments of key precursor chemicals fueling America's opioid crisis, imposing strict global export controls on designated substances and ceasing deliveries to North America entirely. This move targets the synthetic opioid that has claimed over 100,000 US lives annually.

Rare earths and critical minerals relief: In a boon for US tech and defense industries, China will suspend its October 9, 2025, export controls on rare earth elements, vital for everything from electric vehicles to fighter jets, and issue broad licenses for exports of gallium, germanium, antimony, and graphite. This effectively rolls back restrictions imposed since 2022, easing fears of supply disruptions.

End to retaliatory measures: All Chinese tariffs slapped on US goods since March 4, 2025, covering chicken, wheat, corn, soybeans, pork, beef, and more, will be suspended. Non-tariff barriers, including "unreliable entity" listings targeting American firms, will also be lifted. Investigations into US semiconductor giants for antitrust and dumping will be terminated.

Agricultural boom: China commits to buying at least 12 million metric tons (MMT) of US soybeans in the final two months of 2025, followed by 25 MMT annually through 2028. Purchases of sorghum and hardwood logs will resume, while market access for other US farm products widens. Beijing will also extend US import tariff exclusions until December 31, 2026.

Semiconductor and maritime thaw: Retaliation against US chipmakers like Nexperia will end, resuming trade from Chinese facilities. Sanctions on US shipping entities tied to a Section 301 probe into China's maritime dominance will be removed.

These steps, if fully implemented, could unlock tens of billions in US exports and stabilize global markets reeling from Beijing's resource nationalism.

US Reciprocity

Tariff Cuts and Paused EscalationsIn exchange, Washington is dialing back its own pressures:

Tariffs on Chinese imports linked to fentanyl flows will drop by 10 percentage points starting November 10, 2025, with a full suspension of heightened reciprocal duties until November 10, 2026 (maintaining the current 10% baseline).

Certain Section 301 tariff exclusions on Chinese goods, set to expire November 29, 2025, are extended to November 10, 2026.

Implementation of new end-user controls on Chinese affiliates and responsive actions from the maritime Section 301 investigation will be suspended for one year, opening doors for further talks. The US will continue trilateral cooperation with South Korea and Japan on shipbuilding revival.

A triumphant Asia swing for Trump

The China deal is the crown jewel of Trump's week-long Asia offensive, where he notched wins across the board:

In Malaysia, he inked reciprocal trade pacts with Malaysia and Cambodia, launched negotiation frameworks with Thailand and Vietnam, and secured critical minerals deals with Bangkok and Kuala Lumpur.

In Japan, Trump greenlit massive projects under Tokyo's $550 billion US investment pledge, signed a landmark minerals agreement, locked in energy purchases, and boosted anti-drug collaboration.

In South Korea, commitments poured in for US jobs, energy dominance, tech leadership, and maritime ties, billions that underscore Seoul's role as a linchpin in countering Chinese influence.

"This caps a series of historic wins for the American people," the White House stated, framing the trip as a masterstroke in revitalizing US industry amid Beijing's assertiveness.

Analysts are buzzing over the deal's potential to thaw frosty US-China ties, especially with rare earths flowing freer and fentanyl flows stanched. Yet questions linger: Will China honor its soybean quotas amid domestic demand? Can suspended tariffs hold through 2026's election cycle? And does this signal a broader détente, or merely a tactical pause?