China Cuts Tariffs on US Farm Goods, Leaves Soybeans Out
China has lowered tariffs on a range of US agricultural goods including corn, wheat, meat and dairy, but kept an extra 10% duty on soybeans, its largest farm import from the US.
China has announced tariff reductions on a broad set of US agricultural imports, covering corn, wheat, meat, dairy products, sorghum, vegetable oils and meals such as soyoil and soymeal. Soybeans, the single largest US farm product bought by China, were left off the list released by the Chinese Commerce Ministry on Monday and will continue to attract an additional 10 per cent duty.
The decision came alongside parallel "30-for-30" product lists issued by both governments, outlining items under consideration for tariff cuts and expanded market access. The US list contains 77 items, including fireworks, household goods, sporting equipment and toys.
The two sides have also agreed to establish a trade council. Its first assignment will be to take up reciprocal tariff reductions on USD 30 billion worth of products, aimed at supporting stable economic and trade ties.
Soybeans remain the sticking point. Traders have said the existing 10 per cent levy is too steep for private crushers in China to absorb, even as state-owned buyers have stepped up purchases. Sinograin and COFCO have together bought more than 12 million metric tonnes of US soybeans — close to half of the 25 million tonnes that the White House said China had committed to buying each year through 2028.
In May, the White House stated that China had agreed to purchase USD 25 billion worth of US agricultural products annually through 2028, a figure Beijing has not confirmed. Trade in the agricultural and related products covered by Monday's tariff-cut list was worth about USD 17 billion in 2024, broadly matching the reported purchase commitment once soybeans are excluded.
A trader at an international firm that sells soybeans to China said state-owned companies are expected to keep buying US soybeans, and that lower duties on other farm goods could help China meet the reported USD 17 billion target. The trader added, however, that US soybeans are not competitively priced even if tariffs were reduced.
The tariff announcement follows Chinese President Xi Jinping's visit to the United States from September 23 to 25 for a summit with US President Donald Trump, their second meeting this year.