Tariff Wars: The Dawn Over Beijing

The United States and China have announced a set of coordinated trade measures intended to improve the flow of goods, reduce disruptions in key industries, and expand market access for both countries. The actions focus on critical minerals, agricultural products, semiconductors, and compliance-related issues that have recently affected global supply chains.

Over the weekend the White House issued a fact sheet detailing major topics from these talks with China. The Official guidance from US CBP has yet to be published.

Key Areas of U.S. Actions

The United States announced the following steps:

• Tariff Adjustments:

  The U.S. will lower the tariffs on Chinese imports imposed to curb fentanyl flows by removing 10 percentage points of the cumulative rate, effective Nov. 10, 2025, and will maintain its suspension of heightened reciprocal tariffs on Chinese imports until Nov. 10, 2026. (The current 10% reciprocal tariff will remain in effect during this suspension period.)

  
  

• Section 301 Exclusions:

  Extend the validity of specific tariff exclusions under Section 301 through November 10, 2026.

  
  

• Regulatory Pauses:

  Delay for one year the implementation of new end-user controls and responsive actions tied to the ongoing Section 301 investigation focused on maritime, logistics, and shipbuilding.

  
  

• Ongoing Negotiations:

  Continue discussions with China under Section 301 while working with partners in the Republic of Korea and Japan on shipbuilding industry initiatives.

Key Areas of Chinese Commitments

China has agreed to take the following steps:

• Critical Minerals & Export Controls:

  Suspend newly announced export controls on rare earth elements and related minerals, and issue general licenses allowing exports of rare earths, gallium, germanium, antimony, and graphite to U.S. end users and their suppliers.

  
  

• Agricultural Trade:

  Suspend retaliatory tariffs on a wide range of U.S. agricultural products and increase purchases of U.S. soybeans, sorghum, and hardwood logs through 2028.

  
  

• Semiconductors & Industrial Goods:

  End certain countermeasures affecting U.S. semiconductor manufacturers and ensure the resumption of production and trade from Nexperia facilities in China.

  
  

• Regulatory & Compliance Measures:

  Remove non-tariff retaliatory actions such as listings of U.S. companies on unreliable entity lists, and discontinue investigations targeting U.S. firms in the semiconductor supply chain.

  
  

• Chemical Exports:

  Strengthen controls on specific chemicals linked to illicit drug manufacturing, including restrictions on shipments to North America.

  
  

• Shipping & Logistics:

  Withdraw measures implemented in response to the U.S. Section 301 investigation related to maritime, logistics, and shipbuilding sectors.

IFF will continue to monitor these recent actions by the U.S. and Chinese governments and provide subsequent updates, including Customs and Border Protection (CBP) and other U.S. government agency guidance, to our importers as received.