In a significant de-escalation of trade tensions, the United States has announced a broad extension of tariff exclusions and a suspension of planned duty increases on Chinese imports. This move follows a "historic trade and economic deal" reached between President Trump and President Xi Jinping earlier this month.
On November 26, 2025, the Office of the United States Trade Representative (USTR) officially confirmed that 178 key product exclusions from Section 301 tariffs, which were set to expire on November 29, 2025, have been extended until November 10, 2026.
Key Policy Changes for Importers
- Section 301 Exclusion Extension: The 178 exclusions cover critical industrial components, including specific machinery, electric vehicle parts, batteries, semiconductors, and solar manufacturing equipment. These products will remain exempt from additional Section 301 duties for another year.
- "Reciprocal Tariff" Freeze: The U.S. has committed to maintaining the suspension of heightened reciprocal tariffs on Chinese goods until November 10, 2026. The baseline reciprocal tariff rate will remain at 10% during this period, rather than increasing as previously threatened.
- Fentanyl-Related Tariff Cut: Effective November 10, 2025, the U.S. reduced the additional tariff imposed to curb fentanyl trafficking from 20% down to 10%.
As part of this bilateral agreement, china has agreed to several concessions aimed at stabilizing trade flows:
- Retaliatory Tariff Suspension: China will suspend all retaliatory tariffs and non-tariff countermeasures implemented since March 4, 2025.
- Agricultural Purchases: China has committed to purchasing at least 12 million metric tons of U.S. soybeans by the end of 2025, with an annual target of 25 million metric tons for 2026–2028. Purchases of U.S. sorghum and hardwood logs will also resume.
- Export Controls Lifted: China will suspend its export controls on rare earth elements and critical minerals, issuing general licenses for exports to U.S. end-users.
- Fentanyl Crackdown: Beijing agreed to halt shipments of designated fentanyl precursor chemicals to North America.
What This Means for Supply Chains
This agreement provides a crucial window of stability for businesses relying on trans-Pacific supply chains. Importers of excluded industrial goods can plan for 2026 without the immediate threat of reinstated duties. However, the one-year duration suggests that long-term trade relations remain subject to negotiation.
Action Item: Importers should verify if their products fall under the 178 extended exclusions (HTS headings 9903.88.69 and 9903.88.70) to ensure they are correctly claiming duty relief through November 2026.
27 Nov, 2025
