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

China is set to reduce tariffs on a wide range of US agricultural products, including corn, wheat, meat, and dairy, according to a tariff-reduction list issued by its Commerce Ministry on Monday. However, key US export soybeans were notably excluded from the list. The trade ministry's announcement comes in the wake of last week's summit between Chinese President Xi Jinping and US President Donald Trump.

The tariff reductions will cover sorghum, vegetable oils, meals such as soy oil and soymeal, as well as various meat and dairy products.

Despite the tariff cuts, US soybeans will still face an additional 10% tariff, which has raised concerns among traders. Private crushers, in particular, find this rate too high to absorb, even as Chinese state buyers have significantly increased their purchases. Both countries have agreed to establish a trade council, with its first task being to discuss a reciprocal tariff cut on $30 billion worth of products to maintain stable economic and trade relations.

Chinese state-owned agricultural firms Sinograin and Cofco have already purchased over 12 million tonnes of US soybeans, accounting for nearly half of the 25 million tonnes that the White House claims Beijing has committed to buying annually through 2028. Agricultural and related trade on Monday's tariff-list stood at approximately $17 billion in 2024, roughly matching China's reported purchase commitment, excluding soybeans, according to Reuters calculations.