On November 10, 2025, a new trade and economic agreement between the United States and the People’s Republic of China will take effect, following its announcement by the Trump administration on November 1. The agreement aims to reduce tensions between the world’s two largest economies and includes reciprocal commitments on tariffs, export controls, agricultural trade, and enforcement actions. According to the White House, the deal is intended to strengthen U.S. national security and economic competitiveness while addressing issues such as fentanyl trafficking, critical mineral access, and supply chain disruptions.
Under the agreement, China has committed to several key actions. These include halting the flow of designated precursor chemicals used in fentanyl production to the United States, suspending planned new export controls on rare earth elements and other critical minerals, and issuing general export licenses for rare earths, gallium, germanium, antimony, and graphite. China will also remove retaliatory tariffs and non-tariff measures imposed since March 2025. The agreement further calls for China to terminate investigations into U.S. semiconductor companies, lift sanctions on shipping and logistics firms tied to its shipbuilding sector, and allow resumption of operations for certain foreign-owned technology producers.
In exchange, the United States will implement a 10-percentage-point reduction in tariffs on certain Chinese imports linked to fentanyl-related trade measures beginning November 10. The administration will maintain a 10 percent reciprocal tariff on other Chinese goods but suspend any further tariff increases through November 2026. The deal also extends existing Section 301 tariff exclusions, previously scheduled to expire on November 29, 2025, until November 10, 2026. In addition, the United States will suspend for one year implementation of the Bureau of Industry and Security’s “Affiliates Rule,” which would have expanded end-user controls to cover subsidiaries of certain Chinese entities, along with related Section 301 actions targeting China’s maritime, logistics, and shipbuilding industries.
Despite these developments, the agreement is time-limited and subject to review. The agreement is set to remain in effect through November 10, 2026, unless extended by mutual consent.
Supreme Court Hears IEEPA Tariff Case in Extended Session
The U.S. Supreme Court heard oral arguments this morning, November 5, 2025, in the landmark case challenging former President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping import tariffs. The consolidated cases, Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc., drew intense interest from industry and constitutional scholars alike. Arguments lasted more than two and a half hours, following an expansion of the schedule in an October 23 order, granting 40 minutes to the Solicitor General and 20 minutes each to the private business and state challengers — signaling the justices’ recognition of the case’s constitutional and economic importance.
At issue is whether the president may invoke IEEPA — a 1977 emergency-powers statute designed primarily for targeted sanctions and asset freezes — to levy tariffs on imported goods, a power historically reserved for Congress. In August, the U.S. Court of Appeals for the Federal Circuit ruled 7–4 that Trump’s use of IEEPA to impose duties of 10 to 41 percent on multiple countries exceeded executive authority, holding that the statute “does not extend to the imposition of duties.” That decision was stayed pending Supreme Court review, allowing the tariffs to remain in place during the appeal.
According to Treasury data cited in the litigation, the federal government had collected roughly $72 billion under the IEEPA tariffs as of mid-August 2025. If the Court upholds the lower ruling, importers could be entitled to significant refunds — posing budgetary and administrative challenges — and future administrations would need to rely on other authorities such as Section 301 of the Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962 to justify new tariffs.
The justices’ eventual decision will not affect existing Section 232 tariffs on steel, aluminum, copper, and vehicles, which rest on separate national-security findings. Still, today’s arguments underscore how the IEEPA case could redefine the limits of presidential emergency authority and reshape the legal foundations of U.S. trade policy. A ruling is expected before the Court’s term concludes in June 2026.
OIRA Moves to Accelerate Deregulatory Reviews Using “Good Cause” Authority
On October 21, 2025, the Office of Information and Regulatory Affairs (OIRA) issued Memorandum M-25-36, Streamlining the Review of Deregulatory Actions, directing federal agencies to fast-track the repeal of existing rules. The memo, signed by Acting Administrator Jeffrey Bossert Clark, shortens OIRA’s review period for deregulatory actions to 28 days — and just 14 days for rules deemed “facially unlawful” — a major shift from the longstanding 90-day standard under Executive Order 12866. OIRA also instructed agencies to presume that many ancillary procedural reviews, such as those involving federalism or tribal consultation, are unnecessary for deregulatory actions unless clearly required.
The memo places new emphasis on the Administrative Procedure Act’s (APA) “good cause” exception, which allows agencies to bypass notice-and-comment procedures when doing so is “impracticable, unnecessary, or contrary to the public interest.” OIRA urged agencies to invoke this authority more broadly to rescind regulations that are inconsistent with statute, the Constitution, or Supreme Court precedent — without waiting for courts to strike them down. The memo further reminds agencies that rules lifting restrictions can take effect immediately under APA § 553(d)(1), encouraging them to use this flexibility to speed implementation.
For more complex deregulatory actions that require factual or economic justification, OIRA advised early coordination and clear documentation of benefits — particularly reductions in regulatory burdens and improvements in business or individual liberty. While the memo aims to eliminate what it calls “ossification” in the rulemaking process, it also warns agencies to maintain adequate records to withstand judicial review.
Overall, the October 21 directive marks a procedural change in how agencies handle deregulatory actions, signaling the Administration’s intent to quicken the pace of deregulation through tighter timelines and greater reliance on the APA’s “good cause” authority. The move is expected to accelerate agency rollbacks while potentially narrowing opportunities for public comment.
U.S. Launches New Section 301 Probe into China’s Phase One Trade Commitments
The Office of the U.S. Trade Representative (USTR) has opened a new Section 301 investigation examining whether China has failed to meet its obligations under the 2019 Phase One trade agreement. The probe, announced October 24, 2025, reflects U.S. concerns that Beijing has not delivered on pledges to expand imports of American goods, strengthen intellectual property protections, and remove structural barriers to U.S. companies.
Under the 2019 deal, China committed to boost purchases of U.S. products by at least $200 billion above 2017 levels during 2020–2021 and to enact legal reforms supporting fairer competition. Officials say those targets were never met, with persistent shortfalls across agriculture, manufacturing, and services. Analysts also point to ongoing restrictions that disadvantage U.S. exporters and investors.
USTR Jamieson Greer confirmed that the investigation will proceed despite last week’s easing of trade tensions following the new U.S.–China economic and trade agreement announced by the White House. Greer emphasized that the probe addresses separate issues related to compliance with the 2019 Phase One commitments and will continue independently of the recently reached deal.
USTR will assess whether China’s conduct undermines the trade benefits envisioned by the Phase One agreement and determine if further action is justified. The agency has invited written public comments through December 1 and will hold a public hearing on December 16 to gather stakeholder input. Depending on the findings, the administration could consider new tariffs, quotas, or other trade enforcement tools.