Trade tensions between America and China seemed to cool as Beijing’s commerce department announced plans to cut tariffs on various US agricultural products, including wheat, vegetable oils, meat, and dairy.
However, the top import item, soybeans, was omitted from the list and carries an additional 10% tariff.
Soybeans are America’s single largest export to China, worth $12.6 billion in 2024, and the Asian nation bought 52% of all US soybean exports.
The tariff reductions follow Chinese President Xi Jinping’s visit to the US and meeting with President Donald Trump last week. The two nations agreed to establish a trade council to discuss reciprocal tariff cuts on $30 billion worth of products.
Excluding soybeans, trade in the newly listed agricultural goods reached approximately $17 billion in 2024, matching China’s reported annual purchase commitment through 2028, according to Reuters.