US President Donald Trump has halved the tariff on Chinese imports linked to fentanyl production, lowering the rate from 20% to 10% in a move that fulfills a key component of his latest trade deal with Chinese President Xi Jinping.

Info via Bloomberg.

The reduction, formalised in an executive order issued Tuesday, takes effect November 10 and follows an agreement reached at the October summit in South Korea aimed at easing tensions between the world’s two largest economies.

“The PRC has committed to take significant measures to end the flow of fentanyl to the United States, including stopping the shipment of certain designated chemicals to North America and strictly controlling exports of certain other chemicals to all destinations in the world,”

Trump said in the order.

The administration first imposed the fentanyl-related tariff to pressure Beijing into curbing trafficking of the deadly opioid and its precursor chemicals. Trump said progress made by China on those commitments justified the rollback, though he warned that Washington will keep a close watch.

“Should the PRC fail to implement its commitments as described in section 1 of this order, I may modify this order as necessary,”

he said, adding that the State Department and Department of Homeland Security will continue to monitor compliance.

The tariff reduction is part of a one-year pact designed to stabilise trade relations after months of escalating tariffs and export curbs. While the deal represents a significant concession to China and a step toward calmer relations, it stops short of a long-term settlement, leaving scope for renewed friction during next year’s renegotiations or earlier disputes over enforcement.