U.S. Pauses China Tech Restrictions Before Trump-Xi Meeting

The US trade deficit widened to $70.3 billion in December 2025 from $53 billion in November, above forecasts of a $55.5 billion gap. Exports were down 1.7% to $287.3 billion, led by a big fall in nonmonetary gold. Meanwhile, imports went up 3.6% to $357.6 billion, led by purchases of computer accessories. Considering full 2025, the US recorded a $901.5 billion trade deficit, slightly less than a $903.5 billion gap in 2024 and still among the largest since 1960. Exports rose 6.2% to $3,432.3 billion, with nonmonetary gold recording the biggest rise, followed by finished metal shapes, charges for the use of intellectual property and natural gas. Imports increased 4.8% to $4,333.8 billion, led by computers. The deficits narrowed with the EU (to $219 billion in 2025 from $236 billion in 2024) and China (to $202 billion from $296 billion), but widened with Mexico (to $197 billion from $171 billion), Vietnam (to $178 billion from $123 billion), and Taiwan (to $147 billion from $74 billion).

The U.S. and Taiwan have signed a trade agreement that lowers tariffs on Taiwanese exports to 15%, matching rates applied to regional allies Japan and South Korea, while granting broader access for American goods to Taiwan’s market. Meanwhile, Taipei will remove or cut 99% of tariff barriers on U.S. products and offer “preferential market access” for industrial and agricultural exports, including autos, beef, and minerals. Taiwan also pledged to buy over USD 84 billion in U.S. goods between 2025 and 2029, covering liquefied natural gas, crude oil, aircraft, and power equipment. The Office of the U.S. Trade Representative said Taiwan agreed to “resolve longstanding non-tariff barriers,” including recognizing U.S. vehicles built to federal safety standards without extra requirements. The deal follows a January pledge by Taiwanese chip firms to invest at least USD 250 billion in U.S. production, supported by matching government credit.

The Trump administration has paused several major tech-security measures targeting China ahead of an April gathering between President Donald Trump and Xi Jinping, Reuters reported. The shelved actions include a planned ban on China Telecom’s U.S. operations and restrictions on the sale of Chinese equipment used in American data centers. Washington has also put on hold proposed bans on domestic sales of routers made by TP-Link, as well as potential restrictions on the U.S. internet businesses of China Unicom and China Mobile. Another suspended measure would have barred sales of Chinese electric trucks and buses in the U.S. The moves mark the latest effort by the administration to avoid antagonizing Beijing following an October trade truce between the two leaders. That agreement included a Chinese pledge to delay strict export curbs on rare-earth minerals critical to global tech manufacturing.