China to Cut Tariffs on U.S. Farm Goods, Soybeans Excluded

China will cut tariffs on a broad range of U.S. agricultural products, including corn, wheat, sorghum, meat, dairy products, and vegetable oils and meals, according to a list its commerce ministry issued on September 28. The move follows last week’s Washington summit between President Xi and President Trump. The ministry said more than 90% of the covered products will be exempt from additional tariffs and will instead face most favored nation rates. Trade in the affected products totaled about $17 billion in 2024, based on Reuters calculations. That roughly matches the annual purchase commitment for farm goods other than soybeans that the White House announced in May, though Beijing has yet to confirm any such target.

Soybeans, however, were left off the list and will continue to face an additional 10% tariff, which traders warn is too high for private crushers to absorb. Chinese state companies Sinograin and COFCO have bought more than 12 million metric tons (about 26.5 billion lb) of U.S. soybeans, nearly half of the 25 million metric tons (about 55.1 billion lb) a year through 2028 that the White House says China committed to. For U.S. farmers, the announcement offers a boost for grains, meat and dairy exporters, while leaving the biggest question in the China trade, soybeans, unresolved.