China Partially Lifts Retaliatory Tariffs on U.S. Agricultural Products
Beijing, November 5 (Reuters) – China announced it will suspend certain retaliatory tariffs on U.S. farm goods, signaling a modest thaw in trade relations following a recent high-level meeting between the two nations’ leaders.
According to the Tariff Commission of the State Council, the suspension—effective November 10—will remove up to 15% duties on select U.S. agricultural imports. However, Beijing will retain a 10% levy on all American goods that were imposed in response to former President Donald Trump’s tariffs during the so-called “Liberation Day” trade measures.
Leaders’ Meeting Eases Global Trade Tensions
The announcement follows a meeting between U.S. President Donald Trump and Chinese leader Xi Jinping in South Korea, which eased fears that the world’s two largest economies might abandon negotiations to end their long-standing tariff war.
Both sides expressed optimism after the talks, though the Chinese government initially refrained from releasing details about the outcomes.
“It’s a great sign that both sides are making progress in putting the deal into effect,” said Even Rogers Pay, director at Beijing-based consulting firm Trivium China. “It shows alignment and stability in the trade agreement.”
Soybeans Still Face a 13% Tariff — U.S. Exports Remain Uncompetitive
Despite the partial tariff relief, U.S. soybeans continue to face a 13% import tax in China. Traders say this keeps American shipments too expensive compared to Brazilian soybeans, which are currently selling at a discount.
“We don’t expect any significant demand from China to return to the U.S. market,” one international trader said. “Brazilian beans are cheaper, and even non-Chinese buyers are snapping them up.”
Following the recent diplomatic meeting, the White House announced that China would purchase at least 12 million metric tons of U.S. soybeans by the end of 2025, and 25 million tons annually over the next three years. However, Beijing has not yet confirmed these figures, leaving traders cautiously optimistic.
Brazilian Soybeans Gain Ground
China’s soybean buyers are increasingly turning to Brazil, the world’s top soybean exporter, for lower-priced supplies.
Recent reports indicate that Chinese importers purchased 20 cargoes of Brazilian soybeans as prices in South America fell amid expectations of renewed U.S.-China trade activity.
- Brazilian soybeans (December shipment): $2.25–$2.30 premium over January Chicago futures
- U.S. soybeans (Gulf Coast): $2.40 premium per bushel
Before last week’s summit, state trader COFCO had made symbolic purchases of this year’s U.S. harvest—a move seen by analysts as a gesture of goodwill rather than a shift in purchasing patterns.
China’s Soybean Dependence on the U.S. Continues to Decline
In 2024, the United States accounted for only 20% of China’s soybean imports, down sharply from 41% in 2016—the year before Trump’s first presidential term.
Due to the 13% tariff, China has largely avoided buying U.S. crops during this year’s harvest season, costing American farmers billions in lost export revenue.
During a recent meeting with a U.S. agricultural trade delegation, China’s top trade negotiator Li Chenggang attributed the fluctuations in trade to U.S.-imposed tariffs, according to a summary released by the Chinese Commerce Ministry.
“China and the United States remain important agricultural trade partners,” Li said, adding that both sides should work together to create “favorable conditions for cooperation.”
Beijing Extends Tariff Suspension and Non-Tariff Relief
China’s cabinet also confirmed that it will suspend for one year the 24% additional tariffs imposed on U.S. goods last April.
In addition, the Commerce Ministry said Beijing will remove or suspend certain non-tariff retaliatory measures for one year. These include export control restrictions previously imposed on U.S. entities in March and April, a gesture seen as another step toward stabilizing trade relations.
Outlook: Progress, But Soybean Challenges Remain
While China’s tariff relief represents a positive signal in the ongoing trade dialogue, the continued high cost of U.S. soybeans underscores the limits of the progress made.
With Brazil maintaining a strong pricing advantage and China pursuing a diversified import strategy, it remains unclear whether American farmers will regain their former share of the Chinese market anytime soon.
Still, the easing of some tariffs could serve as an important foundation for future negotiations, potentially paving the way for deeper cooperation between the two global powers.
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