Fact Sheet: President Donald J. Trump Strikes Deal on Economic and Trade Relations with China

11/1/2025

Fact Sheets

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Action Summary

Trade Rebalancing with China: President Trump secured a landmark deal with President Xi Jinping to protect U.S. economic strength and national security while prioritizing American workers, farmers, and families.
Chinese Commitments:
- Fentanyl Controls: Halt the flow of precursors used to manufacture fentanyl into the United States.
- Rare Earths & Critical Minerals: Eliminate current and proposed export controls on rare earth elements and other critical minerals; suspend new export control measures.
- Retaliatory Measures: End tariffs and non-tariff countermeasures against U.S. companies, including removal from end user and unreliable entity lists.
- Agricultural Market Access: Open Chinese markets to U.S. soybeans and other agricultural exports with guaranteed purchase volumes through 2028.
- Semiconductor and Trade Adjustments: Ensure resumption of trade for critical legacy chips and remove retaliatory measures linked to U.S. Section 301 actions.
- Tariff Exclusions: Extend the expiration of its market-based tariff exclusion process for U.S. imports until December 31, 2026, and terminate investigations targeting U.S. semiconductor companies.
American Actions:
- Tariff Adjustments: Lower tariffs on Chinese imports by removing 10 percentage points on fentanyl-related measures, while maintaining a 10% reciprocal tariff during the suspension period.
- Section 301 Measures: Extend the expiration of certain tariff exclusions until November 10, 2026 and suspend for one year the interim final rule on end-user controls relating to affiliates of listed entities, as well as responsive actions from the Section 301 investigation.
Broader Diplomatic and Trade Achievements:
- In Asia, additional agreements were signed or frameworks set with Malaysia, Cambodia, Thailand, Vietnam, Japan, and the Republic of Korea.
- These agreements focus on reciprocal trade, critical minerals cooperation, U.S. energy purchases, and investments to bolster American jobs, industrial base, technology leadership, and maritime partnerships.

Risks & Considerations

The trade agreement with China could lead to increased economic stability and opportunities for U.S. industries, including agriculture and technology. However, it may also create dependencies on Chinese markets, which could pose risks if geopolitical tensions rise again.
The suspension of Chinese export controls on rare earth elements and other critical minerals is beneficial for U.S. industries, but it highlights the vulnerability of relying on foreign sources for these materials. Vanderbilt University may need to consider research initiatives focused on alternative sources or synthetic substitutes for these critical materials.
The reduction of tariffs and the resumption of agricultural exports to China could positively impact U.S. farmers and related industries. Vanderbilt’s agricultural research programs might see increased demand for expertise in optimizing crop yields and sustainability practices.
The agreement’s focus on halting fentanyl precursors could impact public health initiatives. Vanderbilt’s medical and public health programs may need to adjust their strategies to address changes in drug trafficking patterns and related health issues.
The suspension of retaliatory measures against U.S. semiconductor manufacturers could benefit the technology sector, potentially leading to increased collaboration opportunities for Vanderbilt’s engineering and technology programs.

Impacted Programs

Vanderbilt’s School of Engineering may benefit from increased opportunities for research and collaboration in semiconductor technology and critical minerals.
Vanderbilt’s Agricultural Research Programs could see increased demand for expertise in sustainable farming practices and crop optimization due to the resumption of agricultural exports to China.
The Vanderbilt Institute for Global Health might need to adjust its focus to address changes in drug trafficking patterns and public health challenges related to the agreement’s measures on fentanyl.
Vanderbilt’s Business School could explore new opportunities for research and partnerships in international trade and economic policy, particularly in relation to the U.S.-China trade dynamics.

Financial Impact

The agreement could lead to increased funding opportunities for research in critical minerals, semiconductor technology, and agricultural practices, potentially benefiting Vanderbilt’s research initiatives.
Vanderbilt may experience changes in its funding landscape, particularly if federal grants prioritize research aligned with the trade agreement’s focus areas.
The potential increase in agricultural exports and technology collaboration could positively impact the local economy, indirectly benefiting Vanderbilt through increased community engagement and partnerships.

Relevance Score: 3 (The agreement presents moderate risks and opportunities, particularly in research and collaboration areas related to technology, agriculture, and public health.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the developments in U.S.-China trade relations, particularly the suspension of Chinese export controls on rare earth elements and the opening of China’s market to U.S. agricultural exports. This could present opportunities for research collaborations and funding in areas related to agriculture and critical minerals.
Vanderbilt’s School of Engineering should explore partnerships with semiconductor manufacturers and other tech companies affected by the removal of Chinese retaliatory measures. This could enhance research opportunities and technological advancements in semiconductor technology.
Vanderbilt’s Peabody College could leverage the increased U.S. agricultural exports to China by developing educational programs focused on international trade and agricultural economics, potentially attracting students interested in these fields.
Vanderbilt’s Medical Center should consider the implications of China’s commitment to halt the flow of fentanyl precursors. This could impact research and public health initiatives related to drug abuse and addiction treatment.
Vanderbilt’s Law School should analyze the legal aspects of the trade deal, particularly the suspension of tariffs and the implications for international trade law. This could provide insights for legal research and education.

Opportunities

The trade agreement presents an opportunity for Vanderbilt’s Owen Graduate School of Management to develop case studies and research on international trade agreements and their economic impacts, enhancing its curriculum and research output.
Vanderbilt can capitalize on the focus on critical minerals by engaging in research and development projects related to sustainable mining and mineral processing technologies, potentially securing federal and private funding.
The emphasis on agricultural exports offers an opportunity for Vanderbilt’s Department of Earth and Environmental Sciences to study the environmental impacts of increased agricultural production and trade, contributing to sustainability research.
By engaging with the broader academic and business community, Vanderbilt can position itself as a leader in discussions on the economic and geopolitical implications of the U.S.-China trade deal, hosting conferences and public forums on the topic.

Relevance Score: 4 (The trade agreement presents significant opportunities for research, partnerships, and educational programs at Vanderbilt, requiring major process changes to capitalize on these opportunities.)

Average Relevance Score: 3

Timeline for Implementation

Effective November 10, 2025: The United States will lower tariffs by 10 percentage points, suspend certain interim final rules, and extend Section 301 tariff exclusions, all set to take effect on this date.
Until November 10, 2026: The suspension of heightened reciprocal tariffs and the extension of tariff exclusions will remain in place.
Last two months of 2025: China is required to purchase at least 12 MMT of U.S. soybeans.
2026 to 2028: China will purchase additional quantities of U.S. soybeans in successive years.
December 31, 2026: China’s market-based tariff exclusion process for U.S. imports remains valid until this date.

Note: The shortest timeline, which is effective November 10, 2025, indicates directives must be implemented within less than 30 days from the fact sheet’s publication date (November 1, 2025).

Relevance Score: 5

Impacted Government Organizations

United States Trade Representative (USTR): Charged with managing Section 301 investigations, negotiating trade remedies, and overseeing the overall implementation of trade policies with China.
Department of Commerce: Plays a central role in regulating export controls, particularly those involving critical minerals, semiconductor supply chains, and other technologies affected by the deal.
Department of Agriculture: Directly impacted through measures affecting U.S. agricultural exports such as soybeans, as the agreement secures expanded market access.
Department of State: Engaged in the diplomatic negotiations that underpin the international aspects of the trade deal, including coordination with allies in Asia.
Department of the Treasury: Monitors and manages the economic and financial implications of tariff adjustments and trade-related fiscal policies.

Relevance Score: 2 (A moderate number of Federal Agencies focused on trade, economic, and diplomatic policy are directly impacted by this agreement.)

Responsible Officials

N/A – The fact sheet outlines bilateral trade commitments without naming specific officials or agencies responsible for implementation.

Relevance Score: 1 (Directives not explicitly assigned to any particular officials.)