US, China list goods recommended for tariff cuts following Trump-Xi summit

China is preparing to reduce tariffs on a wide array of US agricultural products, including corn, wheat, meat, and dairy, according to a list issued by the Chinese commerce ministry on Monday. However, soybeans were notably absent from this tariff-reduction list, disappointing markets that had been anticipating such news following a recent summit between Chinese President Xi Jinping and US President Donald Trump.

The list encompasses sorghum, vegetable oils, meals, including soyoil and soymeal, as well as meat and dairy products. Despite the tariff cuts on most US farm goods, Chinese importers of US soybeans remain subject to a 10% tariff, a rate that traders argue is too high for private crushers to bear, even as Chinese state purchasers have significantly increased their soybean acquisitions.

Both nations have agreed to establish a trade council, which will prioritize negotiating reciprocal tariff reductions on $30 billion worth of products, aiming 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, comprising nearly half of the 25 million tonnes the White House had indicated Beijing would commit to buying annually through 2028.

As of Monday, agricultural and related trade between the two countries amounted to around $17 billion, closely aligning with China's reported purchase pledge, excluding soybeans, according to calculations by Reuters. In May, the US administration had announced Beijing's commitment to purchase this volume annually through 2028, but China has yet to confirm any specific target for such purchases.