China is preparing to reduce tariffs on a wide range of U.S. agricultural products following recent trade negotiations between Washington and Beijing, but soybeans — one of the most important U.S. agricultural exports to China — have been excluded from the tariff-relief list.
The measures cover products including corn, wheat, sorghum, meat, dairy products, vegetable oils and agricultural meals, according to a list jointly announced by China’s commerce ministry and the White House.
The agricultural concessions are part of a $60-billion package of reciprocal tariff reductions negotiated by the U.S.-China Board of Trade and unveiled Monday. The announcement follows last week’s Washington summit between U.S. President Donald Trump and Chinese President Xi Jinping.
More than 90 per cent of the products included on the list will be exempt from the additional tariffs the two countries imposed on each other and will instead be subject to standard most-favoured-nation tariff rates, according to China’s commerce ministry.
The list also includes soyoil and soymeal, but does not extend the same treatment to U.S. soybeans. The announcement did not specify when the new tariff reductions will take effect.
Soybeans remain subject to additional 10% tariff
U.S. soybeans will continue to face an additional 10 per cent Chinese tariff, potentially limiting purchases by private-sector buyers.
Traders have warned that the additional levy remains too high for China’s private soybean crushers to absorb economically, even as state-backed buyers have increased purchases of U.S. supplies.
Chinese state buyers have purchased more than 12 million metric tons of U.S. soybeans, according to Reuters, representing nearly half of the purchasing target cited by the White House.
China is one of the world’s largest soybean importers, making access to its market particularly important for American farmers. Soybeans have also been among the most closely watched agricultural commodities during periods of trade tension between Washington and Beijing.
The tariff announcement provides broader relief for U.S. agricultural exporters while leaving the soybean sector facing a significant trade barrier, despite increased purchases by Chinese state buyers.
