China to Cut Tariffs on US Farm Goods, but Soybeans Left Off List
China will reduce tariffs on a range of US agricultural goods including corn, wheat, meat and dairy, but soybeans were left off the list.
China announced on Monday that it will lower tariffs on a wide range of American agricultural products, covering items from corn and wheat to meat and dairy. The move follows last week's summit in Washington between Xi Jinping and Donald Trump, which markets had been watching closely for signs of a thaw in trade tensions.
The tariff-reduction list issued by the commerce ministry also takes in sorghum, vegetable oils and meals such as soyoil and soymeal, along with meat, dairy products and other goods. Trade in the agricultural and related products named on the list was worth about $17 billion in 2024, a figure that roughly matches the purchase commitment China has reported, once soybeans are set aside.
Conspicuously absent from the list is soybeans, China's single largest agricultural import from the United States. US soybeans continue to face an additional tariff of 10%, a level traders have warned is too steep for private crushers to absorb, even as state-linked buyers have increased their purchases.
Chinese state-run agricultural companies Sinograin and COFCO have bought more than 12 million metric tons of US soybeans, nearly half of the 25 million tons the White House has said Beijing committed to buying each year through 2028. That annual volume was announced by the White House in May, though China has not yet confirmed any such target.
The two sides have agreed to establish a trade council, whose first order of business will be to discuss a reciprocal tariff cut on $30 billion worth of products, part of efforts to keep economic and trade ties on a stable footing.