China is set to reduce tariffs on a wide range of agricultural products imported from the United States, including corn, wheat, meat and dairy, while excluding soybeans from its tariff-reduction list. The announcement was made by China’s Commerce Ministry on Monday, September 28, following last week’s summit between US President Donald Trump and Chinese President Xi Jinping in Washington.
The ministry’s list covers several agricultural commodities, including sorghum, vegetable oils, soyoil, soymeal, meat and dairy products. However, US soybeans will continue to face an additional 10 per cent tariff, raising concerns among traders over the competitiveness of American supplies in the Chinese market.
The development comes as markets closely monitor progress on agricultural trade negotiations between the world’s two largest economies. Both countries have agreed to establish a trade council, which will initially discuss reciprocal tariff reductions covering products worth $30 billion. The initiative aims to promote stable economic and trade relations between Washington and Beijing.
Meanwhile, Chinese state-owned agricultural companies Sinograin and COFCO have purchased more than 12 million metric tonnes of US soybeans, accounting for nearly half of the 25 million tonnes that the White House said China had committed to purchasing annually through 2028.
However, Beijing has not officially confirmed the reported annual purchase target.
In May, the White House announced that China had agreed to buy 25 million metric tonnes of American soybeans annually until 2028. The continued exclusion of soybeans from the latest tariff-reduction measures has therefore drawn attention from agricultural traders and market participants.
According to Reuters calculations, trade in the agricultural and related products covered by Monday’s list amounted to approximately $17 billion in 2024, excluding soybeans. This figure is broadly comparable to China’s reported agricultural purchasing commitment.
The latest announcement signals progress in US-China agricultural trade discussions, although differences over soybean tariffs remain an important issue in ongoing negotiations.
