5 days ago
China Cuts US Farm Tariffs, But Leaves Soybeans Excluded
China and the United States agreed to lower tariffs on many farm products.
The list includes corn, wheat, meat, dairy and some vegetable oils.
Soybeans were left out of the relief package.
This means US soybeans still face an extra 10% tariff in China.
Traders say that tariff can make it difficult for private Chinese buyers to earn money.
Chinese state companies are still buying large amounts of US soybeans.
The United States says China agreed to buy 25 million metric tons of soybeans each year through 2028.
China has not confirmed that target.
The timing for the tariff cuts has not yet been announced.
China will reduce tariffs on US corn, wheat, meat, dairy, vegetable oils and meals.
US soybeans remain subject to an additional 10% Chinese tariff.
More than 90% of products covered by the agreement will receive tariff relief at most-favoured-nation rates.
The agricultural products on the list represented about $17 billion in trade during 2024.
Chinese state firms have bought over 12 million metric tons of US soybeans, while China has not confirmed its reported annual purchase target.
- Who
- China and the United States; Chinese state-run agricultural companies Sinograin and COFCO are also involved in soybean purchases.
- What
- China announced tariff relief for most covered US agricultural products but excluded US soybeans, which retain an additional 10% tariff.
- Where
- The tariff measures concern agricultural trade between China and the United States.
- When
- The measures were jointly issued on Monday after a summit between Xi Jinping and Donald Trump the previous week; the effective date remains unspecified.
- Why
- The reductions are part of a $60 billion package of reciprocal tariff cuts and relate to China’s reported US agricultural purchase commitments.
Key facts
- Products receiving relief
- Corn, wheat, sorghum, meat, dairy products, vegetable oils, soy oil and soymeal
- Soybean tariff
- US soybeans remain subject to an additional 10% tariff in China
- Coverage
- More than 90% of products covered by the agreement will receive relief
- 2024 trade value
- About $17 billion for the agricultural and related products on the list
- Reported soybean commitment
- The White House said China agreed to purchase 25 million metric tons annually through 2028
- Purchases so far
- Sinograin and COFCO have bought more than 12 million metric tons of US soybeans
- Implementation timing
- China’s proposal does not specify when the tariff reductions will take effect
Quotes
Feng Chucheng
Founder and partner at Hutong Research
“Despite the soybean being a non-sensitive item in trade, the political significance of China’s soybean purchase is enormous and carries major political implications.”
freepressjournal.in
Sources
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