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

Beijing has announced plans to reduce tariffs on a wide array of US agricultural products, including corn, wheat, meat, and dairy, except for soybeans, according to China's commerce ministry statement issued on Monday. The tariff reduction list encompasses sorghum, vegetable oils, meals, including soyoil and soymeal, as well as meat, dairy products, and other items.

However, US soybeans continue to face an additional 10% tariff, which traders argue is unfeasible for private crushers to bear despite Chinese state buyers' increased purchases. Both countries have agreed to establish a trade council, with its initial task being to negotiate a reciprocal tariff cut on $30 billion worth of goods to maintain stable economic and trade relations.

Chinese state-run agricultural firms Sinograin and COFCO have already purchased over 12 million metric tons of US soybeans, accounting for nearly half of the 25 million metric tons China has pledged to buy annually through 2028. Agricultural and related trade on Monday's list is valued at approximately $17 billion in 2024, nearly aligning with China's reported purchase commitment, excluding soybeans, as per Reuters calculations.

In May, the White House had stated that Beijing had agreed to buy that quantity annually through 2028; however, China has yet to confirm any purchase target.