- with readers working within the Retail & Leisure industries
- within Insurance, Coronavirus (COVID-19) and Accounting and Audit topic(s)
On October 30, 2025, President Trump and Chinese President Xi Jinping met in Busan, South Korea – this marks the first time the two leaders have engaged in face-to-face talks since 2019, during Trump's first term.
According to a statement from China's Ministry of Commerce (MOFCOM) issued during a press briefing following the meeting, the U.S. and China have reached an agreement in recent negotiations in Kuala Lumpur to suspend certain tariff and export control measures on both sides.
Under the reported agreement, the U.S. will reduce the fentanyl-related tariffs imposed on Chinese goods (including those from Hong Kong and Macao) to 10 percent and suspend for one year the 24 percent reciprocal tariff on China. In turn, China will make corresponding adjustments to its countermeasures against these U.S. tariffs. China's countermeasures included multiple rounds of retaliatory tariffs that went into effect February 10, 2025 and March 10, 2025 in response to the fentanyl-related tariffs. Both sides also agreed to extend certain tariff exclusion measures.
Additionally, the U.S. will implement a one-year suspension of its recent expansion of export controls, which includes the BIS "Affiliates Rule" announced on September 29, 2025. China will implement a one-year suspension of its new export control measures announced on October 9, 2025.
The U.S. also agreed to suspend the Section 301 vessel fees targeting China's maritime, logistics, and shipbuilding sectors for one year, and China agreed to suspend its special port charges on U.S.-owned, operated, built or flagged vessels related to the investigation.
Other measures of the agreement include commitments to expand agricultural trade and cooperation efforts in fentanyl control.
As of publication, neither the U.S. nor China has issued an official release confirming the details and effective dates of the measures. Crowell & Moring, LLP will continue to monitor developments and the potential impact to businesses and consumers moving forward.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
