The United States and China reached a new trade agreement during a meeting in South Korea, easing some tariff tensions. Under the deal, the U.S. will cut tariffs on certain Chinese imports linked to fentanyl trafficking from 20% to 10%, starting November 10. Washington will also extend its pause on higher reciprocal tariffs and maintain Section 301 tariff exclusions until November 2026.

Despite this, Chinese goods will still face an average tariff burden of about 47%, as many other duties under Sections 301 and 232 remain in place.

The U.S. will suspend its investigation and related fees on China’s maritime and logistics sectors for one year, and in return, China will pause its countermeasures for the same period.

Additionally, China agreed to delay its export controls on rare earth elements for one year and resume issuing export licenses. It will also strengthen chemical export rules to curb fentanyl trafficking. In exchange, the U.S. will suspend certain export restrictions targeting companies with potential national security risks.