Following the recent announcement of a U.S.-China trade agreement, China has taken steps to fulfill its commitments by imposing export controls on 13 fentanyl precursor chemicals destined for the U.S., Mexico, and Canada. However, several key sticking points continue to impede trade talks.
Some media reports indicated that under commitments to resume rare earth exports to American companies, Chinese officials have devised a system to fast-track approvals for civilian uses of rare earth products, while continuing to block exports to manufacturers in the U.S. defense industry. U.S. Treasury Secretary Scott Bessent has disputed this report and indicated that a formal rare earths agreement is expected by the U.S. Thanksgiving holiday on November 27.
Additionally, the status of Taiwan remains a point of friction. On November 17, China’s defense ministry lodged formal complaints with the U.S. protesting arms sales to Taiwan. These complaints highlight ongoing concerns that flashpoints in relations between China, Taiwan, and the U.S. could negatively affect a more permanent U.S.-China trade agreement.
U.S. exempts over 200 products from tariffs and reaches trade agreements with Latin American trade partners
Amid concerns about domestic price inflation, the U.S. enacted reciprocal tariff exemptions on over 200 food and agricultural products that cannot be grown in sufficient quantities in the U.S. Among the exempted goods are coffee, tea, bananas, oranges, tomatoes, beef, tropical fruits, fruit juices, and certain fertilizers. Countries including Argentina, New Zealand, and Colombia have praised the exemptions. However, authorities in Brazil, a major exporter of coffee and beef to the U.S., noted that the exemptions were unlikely to have a major impact due to the 40% U.S. tariff in place.
The U.S. also announced trade framework agreements with Ecuador, Argentina, Guatemala, and El Salvador, which are among the top beneficiaries of the recent tariff exemptions. Textile and garment products from Guatemala and El Salvador will also be exempted from U.S. tariffs. Formal agreements are expected within approximately two weeks. Current tariff rates, set at 15% for Ecuador and 10% for Argentina, El Salvador, and Guatemala, will remain unchanged for items not covered by the tariff exemptions.
Under these framework agreements, each trade partner will align its safety standards with U.S. rules, strengthen labor and environmental protections, and refrain from adopting digital services taxes. Additionally, Ecuador will improve access for U.S. machinery, health products, ICT equipment, chemicals, and motor vehicles, while Argentina has committed to providing preferential market access for a broad range of U.S. exports, including medicines, chemicals, machinery, information technology products, medical devices, motor vehicles, and numerous agricultural goods. Guatemala and El Salvador have agreed to address non-tariff barriers involving pharmaceutical and medical device regulation, automotive standards, and product registration processes.
U.S. reaches trade deal with Switzerland and makes progress in other trade negotiations
In recent weeks, the U.S. has made significant progress on trade agreements with several trade partners. On November 14, the U.S., Switzerland and Liechtenstein announced a framework agreement that will lower U.S. tariffs on Swiss goods from 39% to 15%.
The agreement addressed both countries in one publication since Switzerland and Liechtenstein are in a customs union that negotiates a unified trade policy for both countries. Tariffs on pharmaceutical goods and semiconductors from Switzerland and Liechtenstein will be capped at 15% if the U.S. pursues additional sector-specific levies in the future.
As part of the arrangement, companies from both countries have pledged to invest $200 billion (€173.6 billion) over the next five years, including $67 billion (€58.2 billion) in 2026, to create U.S. manufacturing and research jobs across various sectors, including pharmaceuticals, machinery, medical devices, gold manufacturing, and aerospace. Switzerland and Liechtenstein further agreed to eliminate tariffs on various agricultural and industrial goods, including nuts, seafood, fruits, chemicals, and alcoholic spirits.
Separately, President Donald Trump has indicated that the U.S. is close to reaching a trade deal with India, following recent steps by New Delhi to scale back its imports of Russian oil. The terms and date of the prospective agreement have not yet been disclosed.
Progress has also been made on a trade agreement with South Korea after both countries agreed on a Joint Fact Sheet following a meeting between President Trump and South Korea’s President Lee Jae Myung. Under the memorandum, South Korea will develop nuclear-powered submarines and form new business partnerships with the U.S. in shipbuilding, artificial intelligence, and the nuclear industry.
However, recent developments in the relationship between Thailand and Cambodia have put these countries’ recently negotiated trade agreements with the U.S. at risk. These agreements, which lowered U.S. reciprocal tariffs to 19%, were contingent on both governments accepting peace accords facilitated by President Trump earlier this year.
However, the regional security situation has since deteriorated, with recent outbreaks of gunfire reported in villages along the border and Thai officials accusing Cambodia of planting new landmines. Although U.S. officials have not commented on the rising tensions, Thai Prime Minister Anutin Charnvirakul has stated that Thailand will prioritize national security over its trade agreement with the U.S., raising questions about whether these trade agreements will continue to hold.
Everstream clients are receiving more detailed insights and recommendations about this risk.
Don’t miss key supply chain risk updates! Subscribe now to get supply chain news, weather updates, forecasts, and other insights.