China Partially Lifts US Tariffs, But soybean Trade Faces Continued Hurdles
BEIJING - China announced Wednesday it will suspend for one year the 24 percent additional tariffs imposed on US goods in April, while maintaining existing 10 percent levies enacted in response to former US President Donald Trump’s duties. The State Council’s tariff commission also confirmed the removal of duties of up to 15 percent on certain US agricultural goods, effective November 10, reversing measures initially announced in March.
Despite the tariff reductions, US soybean shipments remain comparatively expensive for Chinese buyers, facing a combined tariff rate of 13 percent, including a pre-existing 3 percent base tariff. This price disadvantage is steering buyers towards brazilian alternatives, even for non-Chinese purchasers.
Prior to the onset of the US-China trade war in 2017, soybeans were a dominant US export to China, reaching $13.8 billion in value in 2016. However, Chinese purchases of US soybeans have considerably declined in recent years, falling to roughly 20 percent of its total soybean imports in 2024, down from 41 percent in 2016, according to customs data. This shift has resulted in billions of dollars in lost exports for American farmers.
The proclamation follows a meeting between President Trump and Chinese leader Xi Jinping in South Korea last week, wich eased concerns of escalating trade tensions. While the Trump administration quickly publicized its account of the meeting,China initially refrained from providing a detailed summary.
Prior to the summit, state-owned COFCO purchased three US soybean cargoes, a move analysts interpreted as a goodwill gesture intended to prevent further destabilization of trade relations.
Though, skepticism remains regarding a ample rebound in US soybean demand. “We don’t expect any demand from China to return to the US market with this change,” stated one trader at an international trading company. “Brazil is cheaper than US and even non-Chinese buyers are taking Brazilian cargoes.”
