Negotiations on U.S.-China trade relations have taken a step forward, following a meeting between President Donald Trump and Chinese President Xi Jinping in South Korea. Announced on Nov. 1, the negotiations covered a multitude of trade points between China and the U.S., including stopping chemical exports used to make fentanyl, loosening China’s current and proposed export control over several rare earth elements and other critical minerals, ending retaliation and, of most interest to the ag industry, ending China’s retaliatory tariffs imposed on U.S. exports since March of 2025, reopening Chinese markets to U.S. ag products including beef and soybeans.
A fact sheet from the White House shared an overview of the agreement.
Chinese actions that affect U.S. ag
- China will suspend all of the retaliatory tariffs that it has announced since March 4, 2025. This includes tariffs on a vast swath of U.S. agricultural products: chicken, wheat, corn, cotton, sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products.
- China will suspend or remove all of the retaliatory nontariff countermeasures taken against the U.S. since March 4, 2025, including China’s listing of certain American companies on its end user and unreliable entity lists.
- China will purchase at least 12 million metric tons (MT) of U.S. soybeans during the last two months of 2025 and also purchase at least 25 million MT of U.S. soybeans in each of 2026, 2027 and 2028. Additionally, China will resume purchases of U.S. sorghum and hardwood and softwood logs.
Also included in the agreement are suspensions or restrictions on China’s export controls on rare earths and critical minerals, suspended or strict regulation of exports of chemicals used to make fentanyl, and a suspension of retaliatory trade policies against U.S. semiconductor manufacturers and other major U.S. companies.
The agreement stipulates that China will also remove the measures it took in retaliation for the U.S. Section 301 investigation into China’s growing monopoly of the global shipping and shipbuilding industry and remove sanctions imposed on various shipping entities. During the yearlong reprieve, the U.S. will enlist the cooperation of South Korea and Japan to revitalize the U.S. shipbuilding industry.
In correlation with China’s obligations as stated in the agreement, the U.S. will lower the tariffs on Chinese imports imposed to curb fentanyl flows until Nov. 10, 2026. Additionally, the U.S. will further extend the expiration of certain Section 301 tariff exclusions, currently due to expire at the end of November 2025, until Nov. 10, 2026. The agreement also includes the suspension of several other sanctions against Chinese interests, all due to expire Nov. 10, 2026.
These negotiations come on the heels of an announcement from U.S. Trade Representative (USTR) Jamieson Greer on another Section 301 investigation, this time into China’s compliance with the Phase I Agreement brokered during Trump’s first administration. The investigation, announced in late October, will assess if China has followed through on their end of the Phase I Agreement, the impact on U.S. commerce from the lack of compliance by China, and what action must be taken in response.
"[The] U.S. Meat Export Federation (USMEF) greatly appreciates USTR’s focus on China’s Phase I Agreement commitments,” USMEF President and CEO Dan Halstrom said in response to Greer’s announcement. “The U.S. red meat industry, and the beef industry in particular, was a tremendous beneficiary of President Trump’s Phase I Agreement with China, which enabled annual beef exports to China to quickly grow from just 86 million dollars to exceed 2 billion dollars. Unfortunately, China has walked away from Phase I and has effectively closed its market to U.S. beef this year. The value derived from China benefits both American producers and consumers because China has a strong demand for items less consumed in the U.S.”
Halstrom said that missing out on the market share in China results in a lost opportunity worth an estimated $150 to $165 per head, or $4 billion annually. “At a time of record-high costs of production, we are missing a top customer and unable to truly maximize the value of every animal produced.”
The public comment period for this Section 301 investigation opened Nov. 1 and will close Dec. 1, 2025. Comments may be submitted here.
