USA-China Trade War: Where Do We Stand Now?

Over the past week, US President Donald J. Trump and Chinese President Xi Jinping have been engaged in intensive trade negotiations, held on neutral ground in South Korea.

What Is the Recent Breakthrough in US-China trade Talks?

In 2025, global trade relations have largely depended on the relationship between these two leaders and the agreements struck between the world’s two largest economies.

According to the White House, a breakthrough appears to have been reached, with a new trade deal now in place, at least for the time being.

The main points of contention centred on US soybean exports, the supply of rare earth minerals, and the opioid drug fentanyl.

Beijing has agreed to suspend its export controls on rare earth minerals bound for the United States. These 17 metallic elements are crucial in the manufacturing of cars, aircraft, and defence equipment. With tensions continuing to rise between President Trump and Russian President Vladimir Putin, ensuring an uninterrupted supply of these materials is vital for US military production. The export pause will remain in effect for one year.

In return, President Trump has agreed to lower tariffs on fentanyl imports, while China has pledged to take stronger measures to address the fentanyl crisis in the United States.

What Does This Development Mean for Importers and Exporters?

For now, it seems the trade war has cooled — at least temporarily. This development should bring a degree of stability to import and export operations heading into the busy Christmas trading period and in the run-up to the Chinese New Year in February.

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If your business is involved in trade between the United States and China, please don’t hesitate to get in touch with our freight forwarders at KG Logistics. We offer comprehensive, end-to-end import and export solutions tailored to your needs.

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