Reduced U.S. tariffs on Chinese imports took effect Monday following a trade agreement between President Donald Trump and Chinese President Xi Jinping late last month.
The deal means the U.S. will halve fentanyl-related tariffs from 20% to 10% against China — as the country committed to help stem the flow of fentanyl into the U.S. — bringing tariffs generally to 45%-47%.
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“We agreed that he was going to work very hard to stop the flow [of fentanyl],” President Trump said after the two leaders met in South Korea. “You know, it’s a very complex subject because it’s used for lots of different reasons, including anesthetics and things, but he’s going to work very hard on it — precursors — and I think you’re going to see some real action taken.”
Meanwhile, China is suspending restrictions on exports of rare earth minerals. It comes as the U.S. has sought deals with allies on critical minerals, including efforts to increase mining and processing.
Additionally, the U.S. will also suspend measures related to investigations against China's maritime and shipbuilding. China also agreed to agricultural purchases, including the purchase of 12 million metric tons of soybeans by January and at least 25 million metric tons annually through 2028, according to a White House official.
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The agreement is a "floor" according to USDA Sec. Brooke Rollins, who also noted commitments to buy sorghum, hardwood and the removal of "unwarranted retaliatory tariffs" on agricultural products.
It all comes after President Trump increased tariffs on China earlier this year in retaliation for the nation not doing enough to stop the flow of fentanyl to the United States. The Drug Enforcement Administration says China is the “primary source” of illegal fentanyl in the U.S.