China to Lower Tariffs on US Farm Goods, Excludes Key Soybean Imports

China announced on Monday it will cut tariffs on a wide array of agricultural goods from the United States, but the list of products excluded soybeans, the single most valuable U.S. farm export to the country. The move comes after a summit last week between leaders Xi Jinping and Donald Trump aimed at de-escalating trade tensions.

Scope of the Tariff Reductions

According to a list published by China's commerce ministry, the tariff cuts will apply to a variety of American agricultural products. The affected goods include:

• Corn and wheat
• Sorghum
• Meat and dairy products
• Vegetable oils and meals, such as soyoil and soymeal

The total trade value for the products on this list was approximately $17 billion in 2024, based on calculations by Reuters. This figure aligns with a commitment the White House said Beijing made in May to purchase that amount of U.S. farm goods annually through 2028, a target China has not publicly confirmed.

Soybeans Remain a Sticking Point

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Despite the broad scope of the cuts, U.S. soybeans will continue to face an additional 10% tariff. Traders have indicated this rate is too high for private Chinese crushers to profitably import the oilseed.

The exclusion underscores the crop's strategic importance in the trade relationship. "The political significance of China’s soybean purchase is enormous and carries major political implications," said Feng Chucheng, founder and partner at Hutong Research, in a comment to Reuters. He suggested this gives Beijing leverage over Washington.

Context of Broader Trade Negotiations

While private purchases are stalled by tariffs, Chinese state-run agricultural firms Sinograin and COFCO have already purchased more than 12 million metric tons of U.S. soybeans. This is part of a larger commitment the White House has said Beijing made to buy 25 million tons annually through 2028.

Following the recent leadership summit, both nations have agreed to establish a new trade council. The council's initial task will be to negotiate a reciprocal tariff reduction on $30 billion worth of products, signaling a potential path toward more stable economic ties.