China says to cut tariffs on US farm goods, but soybeans excluded

Beijing, China is set to reduce tariffs on a wide array of U.S. agricultural products, including corn, wheat, meat, and dairy, but soybeans remain excluded from the list, according to the country's commerce ministry announcement on Monday. The market has been eagerly awaiting updates on Chinese tariff cuts on U.S. farm goods following last week's summit between Chinese President Xi Jinping and U.S. President Donald Trump.

The list includes sorghum, vegetable oils, and meals such as soyoil and soymeal, as well as meat, dairy products, and other items. However, U.S. soybeans continue to face a 10% tariff, which traders have cautioned is too high for private crushers to bear, despite Chinese state buyers increasing their purchases. Both nations have agreed to establish a trade council, with its initial task being to discuss a mutual tariff reduction on $30 billion worth of products, aiming to maintain stable economic and trade ties.

Chinese state-run agricultural companies Sinograin and COFCO have already purchased more than 12 million metric tons of U.S. soybeans, accounting for nearly half of the 25 million metric tons that the White House has reported.