10/31/2025
U.S. and China Reportedly Reach Unofficial Trade Concessions Following Leaders’ Meeting
Check out this week’s Customs Corner to read about the unofficial trade concessions following leader's meeting, investigation into China's compliance, and more.
Trade and Customs Updates
1) U.S. and China Reportedly Reach Unofficial Trade Concessions Following Leaders’ Meeting
According to interviews, but without any formal announcement, the U.S. is reportedly reducing tariffs and port fees on Chinese goods while China delays new rare earth export controls, as part of unofficial trade concessions following a meeting between Presidents Trump and Xi.
According to information from interviews, the United States is set to reduce the 20% tariff on Chinese fentanyl-related imports by half and lift port fees on Chinese commercial vessels, following a meeting between President Donald Trump and Chinese President Xi Jinping in South Korea. While no formal announcement or official publication has been made, sources indicate that, in exchange, China has agreed to delay implementing a new export licensing regime for goods containing rare earth elements of Chinese origin. Additionally, the U.S. has reportedly agreed to halt enforcement of a recent expansion of the Commerce Department’s Entity List for Chinese majority-owned subsidiaries. These developments have not yet been formally confirmed by either government and remain based solely on interviews with people familiar with the ongoing discussions.
We will provide further information once a formal announcement and publication is made.
2) U.S. Launches New Investigation into China’s Compliance with Phase One Trade Agreement
The United States has launched a new investigation into China’s alleged failure to meet its commitments under the 2020 Phase One Trade Agreement, potentially paving the way for further trade actions as officials seek public input on how to respond.
The United States has opened a new investigation into whether China has failed to uphold its commitments under the 2020 Phase One Economic and Trade Agreement. The move, initiated by the Office of the United States Trade Representative (USTR) at the direction of the President, comes amid ongoing concerns that China’s actions continue to disadvantage American businesses.
The Phase One Agreement, signed in January 2020, was intended to address longstanding U.S. complaints about China’s trade practices, including issues related to intellectual property, forced technology transfers, agriculture, and financial services. It also included a pledge from China to significantly increase purchases of U.S. goods and services.
However, U.S. officials say that five years after the agreement came into force, China has not fulfilled many of its key commitments. According to U.S. export data, China fell short by more than $217 billion on its agreed purchases of American goods and services in 2020 and 2021. Additionally, concerns remain about China’s progress on intellectual property protection, technology transfer, and market access for U.S. companies.
The new investigation will be conducted under Section 301 of the Trade Act of 1974, the same legal mechanism the U.S. previously used to impose tariffs on Chinese imports during the height of the U.S.-China trade war. The Section 301 Committee is now seeking public input and will hold hearings to gather feedback on China’s implementation of the Phase One Agreement and potential U.S. responses.
Over the past several years, the U.S. has imposed multiple rounds of tariffs on Chinese goods in response to what it described as unfair trade practices. These measures have included tariffs of 25% on $34 billion of Chinese imports, later expanding to cover hundreds of billions more in goods as negotiations between the two countries stalled or made only limited progress.
Despite the signing of the Phase One Agreement, U.S. officials contend that China’s actions since then have not resolved the underlying issues. The USTR has requested formal consultations with the Chinese government and will determine whether China’s policies are actionable under U.S. trade law. If violations are found, the U.S. may take further action, including the imposition of additional tariffs or other measures.
The outcome of this investigation could have significant implications for the U.S.-China trade relationship and for American companies operating in or trading with China. The USTR has invited the public, industry stakeholders, and advisory committees to provide comments on the matter as it considers possible next steps.
Further information on how to submit comments or participate in the hearing can be found in the Federal Register.
3) United States and Malaysia Reach New Trade Deal to Boost Bilateral Relations and Economic Security
The United States and Malaysia have reached a new trade agreement to enhance bilateral economic ties, implement reciprocal tariff reductions, and strengthen supply chain resilience, with provisions for regular review and amendments.
The United States and Malaysia have reached a new trade agreement aimed at deepening economic ties, enhancing reciprocal trade, and strengthening supply chain resilience between the two nations. Both countries reaffirmed their commitment to shared values such as sovereignty and economic prosperity.
Under the new agreement, Malaysia will implement specific customs duty rates on U.S. goods, specified in Schedule Iwhile the United States will reciprocate with the removal of reciprocal tariffs on certain Malaysian exports referenced in Schedule II. Detailed rates are outlined in the annexes attached to the Agreement. The deal also establishes a framework for regular review and potential amendment, allowing either country to propose changes, which will be considered in good faith and can be adopted through mutual written consent.
The agreement is set to enter into force 60 days after both countries complete their respective legal procedures and notify each other in writing, or on another mutually agreed date. This new pact is expected to further align national and regional economic security interests and address both tariff and non-tariff barriers, providing new opportunities for businesses and enhancing the commercial partnership between the United States and Malaysia.
References:
MALAYSIA ART Text Final Clean treaty size with Schedules rev.pdf
Agreement Between the United States of America and Malaysia on Reciprocal Trade – The White House
Joint Statement on United States-Malaysia Agreement on Reciprocal Trade – The White House
4) United States and Cambodia Reach New Trade Agreement to Strengthen Economic Ties
The United States and Cambodia have reached a new trade agreement to deepen economic cooperation, reduce tariffs, and strengthen supply chain resilience, with the agreement taking effect after both countries complete their legal procedures.
The United States and the Kingdom of Cambodia have reached a new trade agreement aimed at deepening economic cooperation, enhancing supply chain resilience, and fostering economic prosperity for both countries. The two nations have agreed to address both tariff and non-tariff barriers to promote fair and reciprocal trade.
Under the new pact, Cambodia will implement specific customs duty rates on U.S. goods listed in Schedule I, while the United States will reciprocate with revised reciprocal tariffs on Cambodian exports for goods listed in Schedule II of the agreement’s annex. Recognizing Cambodia’s status as a least developed country, the agreement seeks to balance development needs with greater economic alignment and security cooperation at both the national and regional levels.
The agreement will come into force once both governments have completed their internal legal procedures and notified each other in writing, marking a new chapter in the commercial relationship between the United States and Cambodia.
References:
3-Cambodia-Art-Schedule-1-Treaty-Size-1.pdf
Joint Statement on United States-Cambodia Agreement on Reciprocal Trade – The White House
5) United States and Thailand Announce Reciprocal Trade Agreement Framework
The United States and Thailand have agreed on a new Reciprocal Trade Agreement Framework that will eliminate most tariffs, expand market access, strengthen labor and environmental protections, address digital and non-tariff barriers, and pave the way for multi-billion-dollar commercial deals across key sectors.
The United States and the Kingdom of Thailand have agreed to a Framework for an Agreement on Reciprocal Trade, designed to significantly expand market access and strengthen bilateral trade relations. Building on decades of cooperation, including the 1966 U.S.-Thailand Treaty of Amity and Economic Relations and the 2002 Trade and Investment Framework Agreement, the new framework sets the stage for opportunities for exporters from both nations.
Key provisions include Thailand’s commitment to eliminate tariffs on approximately 99% of goods, providing broad access for U.S. industrial, food, and agricultural products. In return, the United States will maintain reciprocal tariffs at 19% for Thai goods, with certain products eligible for zero tariffs as identified in future executive orders. Both countries have pledged to address non-tariff barriers, with Thailand agreeing to streamline import procedures for U.S. vehicles, medical devices, pharmaceuticals, and ethanol, as well as accelerate access for U.S. meat, poultry, and horticultural products.
The agreement also emphasizes strong commitments to labor rights, environmental protection, intellectual property enforcement, and digital trade. Thailand will strengthen laws to protect workers’ rights, tackle forced and child labor, and increase environmental safeguards against illegal logging, fishing, and wildlife trade. On the digital front, Thailand will refrain from discriminatory digital taxes, support free cross-border data flow, and ease restrictions on U.S. investment in telecommunications and digital services.
Additionally, both countries will enhance cooperation on supply chain resilience, innovation, investment security, and countering unfair trade practices by third parties. The announcement also highlights forthcoming commercial deals between U.S. and Thai companies in agriculture, energy, and aviation, including multi-billion-dollar purchases of agricultural products, energy commodities, and U.S. aircraft.
Final negotiations and domestic procedures will take place in the coming weeks before the agreement is formally signed and enters into force, marking a new era of economic partnership between the United States and Thailand.
Reference:
6) United States and Vietnam Agree to New Trade Framework
The United States and Vietnam have agreed on a new trade framework that will expand market access, address non-tariff barriers, strengthen cooperation on digital trade, labor, and environmental standards, and support multi-billion-dollar commercial deals between the two countries.
The United States and the Socialist Republic of Vietnam have reached an important milestone in their economic partnership with the announcement of a Framework for an Agreement on Reciprocal, Fair, and Balanced Trade. Building on the historic 2000 Bilateral Trade Agreement, the new framework is designed to further open markets and strengthen bilateral economic ties, offering exporters from both nations unprecedented access.
Under the proposed agreement, Vietnam will grant preferential market access for nearly all U.S. industrial and agricultural products, while the United States will maintain reciprocal tariffs at 20%, with some Vietnamese exports eligible for zero tariffs as specified in future executive orders. Both countries have pledged to address non-tariff barriers, including Vietnam’s acceptance of vehicles meeting U.S. safety standards, streamlining import licensing for medical devices and pharmaceuticals, and improving intellectual property protections.
The framework also includes commitments to enhance cooperation on digital trade, investment, labor rights, environmental standards, customs procedures, and regulatory practices, with a shared goal of improving supply chain resilience and addressing unfair trade practices. Recent commercial deals underscore the growing partnership, including Vietnam Airlines’ purchase of 50 Boeing aircraft worth over $8 billion and Vietnamese companies signing agreements to buy U.S. agricultural commodities valued at more than $2.9 billion.
Negotiations to finalize the agreement will continue in the coming weeks, with both governments preparing for signature and completing domestic procedures to bring the landmark trade accord into force.
Reference:
7) CBP Launches Automated Application for ACE Portal Importer Accounts
On October 30, 2025, U.S. Customs and Border Protection launched an automated online application for trade participants with a CBP Form 5106 to easily apply for ACE Secure Data Portal Importer accounts.
On October 30, 2025, U.S. Customs and Border Protection (CBP) introduced a new automated system for applying for Automated Commercial Environment (ACE) Secure Data Portal top accounts with the Importer sub-account view.
This update streamlines the application process for trade participants who already have a CBP Form 5106 (5106 record) on file but do not yet have ACE Portal access. Eligible users are encouraged to utilize the new online application, which can be accessed directly through the ACE Portal Importer Account Application or via CBP’s Applying for an ACE Portal Account webpage.
The new tool is intended to simplify account setup and improve access to CBP’s electronic trade management platform.
Reference:
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