China says to cut tariffs on US farm goods, but soybeans excluded

BEIJING: China is set to cut tariffs on a broad range of US agricultural goods, from corn and wheat to meat and dairy, but top import item soybeans were excluded from a tariff-reduction list its commerce ministry issued on Monday.

Markets have been waiting for news on Chinese tariff cuts on US farm goods following last week’s Washington summit of leaders Xi Jinping and Donald Trump.

The list covers sorghum, vegetable oils and meals, including soyoil and soymeal, along with meat, dairy products and other items, the commerce ministry said.

US soybeans, however, still face an additional tariff of 10%, which traders have warned is too high for private crushers to absorb, even as Chinese state buyers have stepped up purchases.

Both sides have agreed to form a trade council, whose first task will be to discuss a reciprocal tariff cut on $30 billion worth of products, in a bid to ensure stable economic and trade ties.

Chicago soybeans rise as China’s buying of US beans falls in August

Chinese state-run agricultural companies Sinograin and COFCO have bought more than 12 million metric tons of US soybeans, nearly half the 25 million the White House has said Beijing committed to buying annually through 2028.

Trade in the agricultural and related products on Monday’s list stood at about $17 billion in 2024, roughly matching China’s reported purchase commitment, excluding soybeans, according to Reuters calculations.

In May, the White House said Beijing had agreed to buy that volume annually through 2028, but China has yet to confirm any target for such purchases.