China Cuts Tariffs On US Farm Goods, But Soybeans Remain Excluded From Relief
China is set to reduce tariffs on a wide range of US agricultural products, including corn, wheat, meat and dairy, but soybeans, its biggest US farm import, have been excluded from the tariff-relief list jointly issued by China’s Commerce Ministry and the White House. Markets had been awaiting details of tariff reductions on US agricultural products following last week’s Washington summit between…
China is cutting tariffs on numerous US agricultural products, such as corn, wheat, meat, and dairy, but soybeans remain outside the relief package, Reuters reports. This decision comes after a recent summit between Chinese President Xi Jinping and US President Donald Trump, where details of tariff reductions on US agricultural goods were expected.
The agreement forms part of a $60 billion package of reciprocal tariff cuts, with over 90% of the covered products receiving tariff relief. However, soybeans continue to face a 10% additional tariff, which may prove too high for private Chinese crushers to bear despite state buyers increasing purchases. China has reportedly purchased over 12 million metric tons of US soybeans, nearly half of its pledged annual commitment through 2028, and private crushers operating at negative margins.
While the tariff reductions might improve trade between the two countries, the continued 10% tariff on soybeans leaves a significant portion of their agricultural trade outside the relief package.
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