Executive Order Modifies Reciprocal Duties, Implementing New U.S.-China Economic Deal
On November 4, 2025, President Donald J. Trump issued an Executive Order formalizing changes to U.S. trade policy with China. This action implements the Kuala Lumpur Joint Arrangement, a “historic and monumental deal” reached with President Xi Jinping, aimed at resolving long-standing trade imbalances and security concerns.
The Core U.S. Action: Sustained Tariff Suspension
The primary immediate action taken by the U.S. is the continuation of the suspension of the heightened reciprocal tariffs that were previously imposed on Chinese imports.
- Duration: The suspension is set to remain in effect until November 10, 2026.
- Context: This move fulfills a U.S. commitment under the new trade arrangement and is intended to foster a period of economic stability and cooperation between the two nations.
Key Commitments from China
The new Arrangement required significant concessions from the People’s Republic of China (PRC) to address U.S. concerns regarding non-reciprocal trade and national security:
Critical Minerals: To stop and effectively eliminate restrictive export controls on rare earth elements and other critical minerals. Ensures reliable U.S. access to materials vital for national defense and the energy sector
Agriculture: To increase purchases of crucial U.S. exports, including soybeans, sorghum, and logs. Strengthens the domestic agricultural infrastructure and economy.
Technology: To address previous retaliatory actions against U.S. semiconductor manufacturers and the supply chain. Supports U.S. manufacturing and defense industrial base.
Retaliatory Tariffs: To suspend or remove many of its own retaliatory tariffs against the U.S. (especially on farm products until the end of 2026). Provides immediate relief and market access for U.S. exporters.
