China Announced its Commitments to the U.S. for Tariff Reductions

Details of the Trade Agreement Between China and the USA

The White House clarified the scope and purpose of the trade agreement between U.S. President Donald Trump and Chinese President Xi Jinping. This agreement includes both the export of rare earth elements and the enhancement of efforts against fentanyl.

Restrictions on Rare Earth Elements Are Lifted

The White House stated that China would lift its restrictions on the export of rare and critical minerals, noting that necessary licenses would be granted for the proper export of valuable components such as gallium, germanium, antimony, and graphite in line with U.S. interests.

Cooperation in the Fight Against Fentanyl

It was emphasized that China committed to halting the export of chemicals used in fentanyl production to North America. In addition, it was announced that the export of other specific chemicals would be closely monitored globally, which could significantly contribute to the U.S. fight against fentanyl.

Tariff Reductions and Market Access Permits for Agricultural Products

China will lift the tariffs imposed on U.S. agricultural products since March 4. In this context, critical agricultural products such as wheat, corn, cotton, and soybeans will be granted qualified access to markets in China.

Measures to Be Taken by the U.S. Side

According to the White House announcement, the U.S. will eliminate 10% of the tariffs applied on imports from China as part of the fight against fentanyl, thereby enhancing the impact of this agreement. Additionally, measures implemented under the 301 investigations targeting China’s maritime and logistics sectors will be suspended for one year, valid until November 10, 2026.

Conclusion

These developments are critically important for reshaping trade relations between the two countries and calming markets. China’s tariff reductions and cooperations offer a significant opportunity to mitigate the negative effects on the U.S. economy.