Truce Reduces Tariffs, Yet Core U.S.-China Disputes and Fentanyl Regulation Remain Unsettled

Washington D.C., November 1, 2025 – President Donald Trump's forceful approach toward China has yet to yield sweeping changes, but a recent trade ceasefire with Beijing has brought a tentative pause. After intense negotiations in Busan, South Korea, on October 30, the United States reduced its 20% tariffs on Chinese goods linked to fentanyl to 10%, lowering the average tariff rate from 57% to 47%, according to

. This decision, presented as a mutual victory, is intended to stem the influx of fentanyl precursors and ease trade frictions. Still, experts warn that this is merely a short-term break and does not resolve the underlying structural disagreements, as reported by .

Several additional compromises are part of the agreement: China will pause new export restrictions on rare earth elements and magnets—vital to U.S. industry—and has pledged to buy 25 million metric tons of American soybeans each year for three years, Reuters noted. In return, Trump delayed the imposition of 100% tariffs and port charges on Chinese products. While President Xi Jinping has been less outspoken, state media indicated his willingness to work with the U.S. on fentanyl issues, describing the arrangement as a "win-win," according to

.

Sectors dependent on international trade are set to gain. Retail giants such as

(NYSE: WMT) and (NASDAQ: AMZN) could benefit from reduced import expenses, while technology leaders like (NASDAQ: AAPL) and (NASDAQ: INTC) may see some relief in their supply chains, as highlighted in the FinancialContent market minute. U.S. farmers, especially those growing soybeans, are likely to profit from renewed Chinese demand, according to a . On the other hand, businesses that moved manufacturing back to the U.S. or shifted sourcing to countries like Vietnam or India could lose their competitive edge as Chinese imports become less expensive, the FinancialContent market minute added.

The overall impact of the agreement is uncertain. While it brings temporary stability to U.S.-China trade relations, its one-year term and conditional provisions highlight its vulnerability. China's pledge to regulate fentanyl precursors is yet to be tested, and ongoing disputes over technology and intellectual property remain unresolved, the FinancialContent market minute pointed out. On the geopolitical front, the deal prevents immediate conflict but does little to slow the U.S. drive to separate from China in fields like semiconductors and artificial intelligence, where China is pushing for greater independence, according to

.

Within the U.S., Trump's tariff strategy is facing resistance. At the end of October, the Senate—with support from four Republican members—voted to end tariffs on imports from Canada, Brazil, and other countries, reflecting bipartisan dissatisfaction with rising costs for both consumers and businesses, as reported by a

. Despite these challenges, similar proposals have been blocked in the House, and Trump's ongoing Supreme Court case regarding tariff powers could further complicate matters, according to .

Looking forward, the outcome of the truce will depend on China's enforcement of fentanyl regulations and the progress of future trade discussions. While markets are cautiously optimistic, there is skepticism about whether Beijing will fulfill its promises or if shifts in U.S. political leadership will alter the course, the FinancialContent market minute cautioned. The one-year deadline also puts pressure on both countries to address broader challenges, from supply chain security to ideological competition, Reuters added.

For now, the agreement offers businesses some relief and marks a rare moment of cooperation in a divided global economy. Still, as Trump himself admitted, this will only be "a great success" if it leads to lasting change, the FinancialContent market minute observed.

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