Beijing
China has announced that it will suspend some retaliatory tariffs on U.S. farm imports starting November 10, following last week’s meeting between President Xi Jinping and U.S. President Donald Trump. However, tariffs on American soybeans will remain at 13%, keeping them costly compared to Brazilian alternatives.
The State Council’s tariff commission confirmed that duties of up to 15% on certain agricultural goods would be lifted but said that a 10% levy on all U.S. goods would stay. The decision came after talks aimed at calming trade tensions between the two major economies that had disrupted global supply chains.
Analysts in Beijing said the move signals progress toward stabilizing relations. “It shows both sides are aligned and that the agreement is likely to hold up,” said Even Rogers Pay of Trivium China. Still, traders noted the changes would not significantly boost U.S. soybean demand in China since Brazilian beans remain cheaper.
The White House claimed China had agreed to buy at least 12 million tons of U.S. soybeans this year and 25 million tons annually for the next three years, though Beijing has yet to confirm.
Currently, Brazilian soybeans are offered at about $2.25 per bushel over Chicago futures, while U.S. beans sell for $2.40, keeping the South American product more attractive.
China’s soybean imports from the U.S. dropped to 20% in 2024, down from 41% in 2016, costing American farmers billions. Beijing also said it would suspend for one year its 24% additional tariffs on U.S. goods imposed last April.
