China eases tariffs on U.S. farm goods, keeps soybeans out

China has announced plans to reduce tariffs on a broad range of U.S. agricultural goods, including meat, corn, and dairy products, as part of a $30 billion bilateral exemption deal. However, soybeans were notably absent from the list of tariff exemptions released by China's Commerce Ministry on Monday. The exemption does cover soybean derivatives such as soyoil and soymeal, but whole soybeans will still face an additional 10% import tariff in China.

This decision highlights Beijing's cautious approach towards increasing soybean imports, a key U.S. product that was once a major import for China. The soybean trade between the two nations became a contentious issue during a trade war in 2020, but relations have since softened. China had pledged to buy 25 million soybeans annually through to 2028 as part of the truce, which also involves setting up a trade council to discuss reciprocal tariff cuts on $30 billion worth of goods.

The U.S. reciprocated by agreeing to lower tariffs on 77 Chinese goods worth up to $30 billion, including plastics and electronics.