China Excludes Soybeans in New Tariff Cuts on U.S. Farm Goods
China announces tariff reductions on various U.S. agricultural products, but soybeans remain subject to higher tariffs.
China will reduce tariffs on several U.S. agricultural goods, excluding soybeans.
The U.S. soybean market faces a 10% tariff, impacting trade dynamics.
A new trade council will discuss reciprocal tariff cuts on $30 billion worth of products.
China has announced a significant reduction in tariffs on a variety of U.S. agricultural products, including corn, wheat, meat, and dairy, as of September 28, 2026. However, soybeans, which are a major import item, have been notably excluded from this list. This decision comes after a recent summit between Chinese President Xi Jinping and former U.S. President Donald Trump, where both leaders discussed trade relations.
The Chinese Ministry of Commerce released the updated tariff list, which includes products such as sorghum, vegetable oils, and various meat and dairy items. While these reductions are seen as a positive step towards easing trade tensions, the exclusion of soybeans is concerning for U.S. farmers and traders. Currently, U.S. soybeans are subject to an additional 10% tariff, which industry experts argue is too burdensome for private crushers to manage, despite increased purchases by Chinese state buyers.
In a bid to strengthen economic ties, both nations have agreed to establish a trade council. This council's initial focus will be on negotiating reciprocal tariff reductions on approximately $30 billion worth of goods. This initiative aims to stabilize the ongoing economic relationship between the two countries, which has been strained in recent years.
Chinese state-owned agricultural firms, including Sinograin and COFCO, have reportedly purchased over 12 million metric tons of U.S. soybeans, nearly half of the 25 million metric tons that the White House indicated China committed to buying annually until 2028. However, the lack of confirmation from China regarding specific purchase targets raises questions about the reliability of these commitments.
Trade in the agricultural sector, as indicated by the recent tariff list, amounted to around $17 billion in 2024, aligning closely with China's stated purchase commitments, excluding soybeans. As negotiations continue, the agricultural market will be closely monitored for any further developments regarding tariffs and trade agreements.
