China announced it would suspend some tariffs on U.S. imports, including agricultural products, after the leaders of the two countries met last week. Reuters reported.
China’s State Council Tariff Commission said it would remove tariffs of up to 15% on a range of U.S. agricultural products starting Nov. 10. At the same time, a 10% tariff remains in place, imposed in response to tariffs imposed by President Donald Trump as part of the so-called “Liberation Day”.
However, even after the rate reduction, Chinese soybean importers will still pay a 13% tariff, taking into account the base 3%. According to traders, this makes American soybeans too expensive compared to supplies from Brazil.
Before the start of the US-China trade war in 2017, soybeans were the main US export to China – in 2016, Chinese imports amounted to $ 13.8 billion. In recent years, China has significantly reduced purchases of American crops, which led to billions in losses for US farmers. According to customs data, in 2024, American soybeans accounted for only about 20% of Chinese imports, compared with 41% in 2016.
Last week, investors in the United States and China reacted positively to a meeting between Donald Trump and Xi Jinping in South Korea, which eased fears that negotiations on tariffs that have threatened global supply chains would collapse. Although Trump and the White House quickly presented their version of the meeting, the Chinese side refrained from disclosing the details of the agreements reached.
State-owned company COFCO purchased three shipments of American soybeans on the eve of the summit, analysts saw this as a gesture of goodwill and a signal that China does not want to further escalate the trade conflict.
