China to cut tariffs on US farm goods, but not soybeans — Dawn

China plans to reduce tariffs on a wide range of agricultural goods from the United States, including corn, wheat, meat and dairy products. At the same time, US soybeans, which are among the main imported goods, were not included in the list of products eligible for tariff reductions, Dawn reports.

Which goods are covered by the decision

The list was jointly released by China’s Ministry of Commerce and the White House after a meeting between Chinese leader Xi Jinping and US leader Donald Trump in Washington last week. The tariff changes are part of a $60 billion package of mutual tariff cuts that was first presented on Monday.

The list also includes sorghum, vegetable oils and meals, including soybean oil and soybean meal, as well as other product categories. The document does not specify the dates when the reduced tariffs will take effect. According to the Chinese ministry, the proposal provides for exempting more than 90% of the covered goods from all additional tariffs while applying most-favored-nation rates.

Soybeans remain subject to an additional tariff

US soybeans will continue to be subject to an additional 10% tariff. Traders said that this tariff level is too high for private Chinese processors, although China’s state buyers are increasing their purchases of the product.

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Hutong Research founder and partner Feng Chuchen said that soybean purchases have major political significance. In his view, maintaining a separate approach to soybeans gives Beijing leverage in its relations with Washington ahead of the US midterm elections.

Chinese state agricultural companies Sinograin and COFCO have already purchased more than 12 million metric tons of US soybeans. This is nearly half of the 25 million tons that, according to the White House, Beijing has committed to buying annually through 2028. China has not yet confirmed a target for such purchases.

According to Reuters calculations, trade in goods on the list and related products amounted to about $17 billion in 2024, excluding soybeans. As of 07:09 GMT, the most active soybean contract on the Chicago Board of Trade fell by 1.38% to $13.75 per bushel.