China to cut tariffs on US farm goods, but list excludes soybeans
COF•China is set to cut tariffs on a broad range of US farm goods, including corn, wheat, meat and dairy, but soybeans remain subject to an additional 10% tariff. Chinese state-run buyers have purchased more than 12 million metric tons of US soybeans, nearly half the White House’s stated annual target of 25 million through 2028.
1. Tariff cuts exclude soybeans
China is set to reduce tariffs on US agricultural goods including corn, wheat, sorghum, meat, dairy, vegetable oils and meals. The list was jointly issued by China's commerce ministry and the White House as part of a $60 billion package of reciprocal tariff cuts. The proposal does not specify when the reductions will take effect, and the ministry said more than 90% of covered products would be exempt from additional tariffs and subject to most-favoured-nation rates.
2. Soybean purchases continue
US soybeans remain subject to an additional 10% tariff, which traders have warned is too high for private crushers to absorb. Chinese state-run companies Sinograin and COFCO have bought more than 12 million metric tons of US soybeans, nearly half the 25 million metric tons the White House said Beijing committed to purchasing annually through 2028; China has yet to confirm that target.
3. Costs and market reaction
Trade in the products on the tariff-cut list totaled about $17 billion in 2024, excluding soybeans. Traders said the landed cost of US and Brazilian beans without tariffs is roughly $595 per ton, while Chinese private crushers are running at negative margins at those prices. The most-active Chicago Board of Trade soybean contract was down 1.38% at $13-3/4 per bushel as of 0709 GMT.
