Trump slashes fentanyl tariffs on China to 10% in major trade deal with Xi Jinping

• President Donald Trump slashed fentanyl-related tariffs on Chinese imports from 20 percent to 10 percent, citing China’s pledge to curb fentanyl precursor shipments. The change takes effect Nov. 10.
• The U.S. maintains a 10 percent tariff freeze on Chinese goods for another year. China agreed to delay rare earth mineral export controls—critical for tech/military—but offered no long-term guarantees.
• China committed to resume purchases of U.S. soybeans and farm goods, offering relief to American farmers, though volumes remain below pre-trade-war levels.
• Lawmakers like Rep. Moolenaar (R-MI) warned of China’s history of broken promises. Treasury Secretary Bessent stressed strict compliance checks, with tariffs adjustable based on China’s actions.
• Key issues like semiconductor bans, TikTok, and China’s support for Russian oil were sidelined. Markets reacted cautiously (gold rose 1.2 percent), with analysts doubting durability without structural reforms.

In a bold move signaling a potential thaw in U.S.-China trade tensions, President Donald Trump announced a reduction in fentanyl-related tariffs on Chinese imports—halving the rate from 20 percent to 10 percent—following high-stakes negotiations with Chinese leader Xi Jinping.

The decision, formalized in an executive order on Nov. 4, comes after the two leaders met at the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea, marking a significant de-escalation in the ongoing trade war.

According BrightU.AI‘s Enoch, APEC summit is an annual meeting of the leaders of the 21 member economies of the APEC forum. Established in 1989, APEC aims to facilitate economic growth, cooperation, trade and investment in the Asia-Pacific region. The APEC summit is the premier forum for economic dialogue and cooperation in the Asia-Pacific, bringing together heads of state and government to discuss and make decisions on regional economic integration, trade liberalization and economic growth.

The U.S. will cut tariffs on Chinese goods linked to fentanyl production from 20 percent to 10 percent, effective Nov. 10. Trump cited China’s commitment to “take significant measures to end the flow of fentanyl” to the U.S., including stricter controls on precursor chemicals.

“The PRC [People’s Republic of China] has committed to stopping the shipment of certain designated chemicals to North America and strictly controlling exports of certain other chemicals to all destinations in the world,” Trump stated in the executive order.

However, skepticism remains among lawmakers. Rep. John Moolenaar (R-MI) warned, “The ultimate measure of success will be whether China upholds its promises or lies and cheats as it usually does.”

The U.S. will also maintain a freeze on reciprocal tariffs, reducing the rate from 34 percent to 10 percent for another year. This pause aims to stabilize trade relations while ensuring China upholds its commitments on rare earth minerals and agricultural purchases.

China’s rare earths pledge

Beijing agreed to delay stringent export controls on rare earth minerals—critical for semiconductors and military technology—for one year. Trump expressed optimism that this suspension would be “routinely extended,” though China’s Commerce Ministry remained noncommittal, stating only that it would “study and refine specific plans” after the pause.

China also pledged to resume purchases of U.S. soybeans and other agricultural goods—a major win for American farmers who suffered losses during the trade war. However, experts note that recent purchases remain far below pre-conflict levels.

While Trump hailed the deal as “amazing” and rated it “12 out of 10,” critics argue that China has a history of unmet promises on fentanyl control. Treasury Secretary Scott Bessent acknowledged the risk, stating: “We’re going to set up very strict quantitative criteria, and we’ll revisit it in six or 12 months to see whether they’ve accomplished it. My sense is the tariffs could go up or down.”

Sen. Pete Ricketts (R-NE) cautioned against over-reliance on China, urging diversification: “We must continue to secure our supply chains and protect our technology to end our dependence on Communist China.”

Despite progress, key disputes—such as U.S. restrictions on advanced semiconductor exports (including Nvidia’s Blackwell chips), TikTok’s future, and China’s support for Russian oil—were left unresolved. Taiwan and Ukraine were briefly mentioned but not deeply discussed.

Market reactions and future outlook

Global markets reacted cautiously, with gold prices rising 1.2 percent as investors weighed the deal’s fragility. Analysts like Wendy Cutler of the Asia Society Policy Institute warned that without addressing structural issues like China’s industrial overcapacity, “tensions are certain to heat up again.”

Trump confirmed plans to visit China in April 2026, followed by Xi’s reciprocal trip to the U.S., signaling continued diplomatic engagement.

While Trump’s tariff cuts mark a tactical retreat from economic warfare, the agreement’s longevity hinges on China’s compliance. As the fentanyl crisis continues to devastate American communities, the White House has made clear: failure to deliver will prompt swift retaliation.

For now, the world watches—and waits—to see if this détente holds or becomes another chapter in the escalating U.S.-China rivalry.

Watch the video below about President Donald Trump announcing that he is reducing the previously imposed tariffs on China.

This video is from the Cynthia’s Pursuit of Truth channel on Brighteon.com.

Sources include:

TheEpochTimes.com

BrightU.ai

Mint.com

CNBC.com

Brighteon.com