Following meetings at the White House, China is set to cut tariffs on a broad range of US agricultural goods, from corn and wheat to meat and dairy. Soybeans was not on the list.
The reciprocal tariff reduction as well as an extension of a trade truce were among the key takeaways.
The agreement came following last week’s summit of leaders Xi Jinping and President Trump. The agricultural tariff cuts are part of the $60 billion package of reciprocal tariff cuts negotiated by the Board of Trade. The list covers sorghum, vegetable oils and meals, including soyoil and soymeal, along with meat, dairy products and other items, it did not state when the tariff cuts will take effect.
According to a statement by the commerce ministry, more than 90% of the covered products will be exempt from all additional tariffs imposed on each other and will instead be subject to most-favored-nation tariff rates.
US soybeans still face an additional tariff of 10%, which traders have warned is too high for private crushers to absorb. Keeping soybeans on a separate track gives Beijing leverage in its dealings with Washington, especially ahead of the US midterm elections.
Chinese state-run agricultural companies Sinograin and COFCO have bought more than 12 million metric tons of US soybeans, nearly half the 25 million the White House has said China committed to buying annually through 2028.
Without tariffs, the landed cost for both US and Brazilian beans is roughly $595 per ton, although Brazilian soybeans are generally preferred for their higher oil and protein content, according to traders. At those prices, Chinese private crushers are running at negative margins.
For the United States, the move unlocked improved market access for about 30% of U.S. exports to China.
China will also look to reduce levies on U.S. fish and seafood, logs and wood products, cosmetics and medical devices, as well as Chinese small appliances such as coffee makers and toasters, tableware, blankets and bed linens, toys, fireworks, artificial flowers, Christmas tree lamps and other holiday decorations, and children’s car seats.
The presidential summit also yielded an agreement for China to import 10 million metric tons of coal annually from the United States in 2027 and 2028, according to the White House release.
According to China’s commerce ministry, a two-month extension of a trade truce to Jan.10 would provide room for both sides to evaluate their ongoing arrangement to resolve economic and trade issues, while considering how to advance on those fronts. Both sides will hold regular talks on potential investment opportunities and barriers, enhancing policy transparency and predictability, and responding to enterprises’ concerns, the ministry said.