BUSINESS

China Reluctant to Resume U.S. Farm and Energy Imports After Tariff Deal

By Feng Yiming, Luo Guoping and Kelsey Cheng

Published: May. 13, 2025 6:46 p.m. GMT+8

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Lingering levies of more than 20% on U.S. goods make the agricultural and energy products too expensive for Chinese buyers. Photo: AI generated

Chinese buyers are in no hurry to resume U.S. agricultural and energy imports as tariffs of more than 20% remain even after the two countries reached an agreement to step back from an escalating trade war.

Following trade talks in Geneva over the weekend, Washington and Beijing released a statement Monday to significantly lower the reciprocal tariffs imposed on each other. The U.S. will cut its tariffs imposed on China to 30% from 145% for 90 days, while China’s tariffs on the U.S. will be lowered to 10% from 125% for the same period.

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Despite recent mutual tariff reductions, significant duties (20–25%) still apply to major U.S. agricultural and energy exports to China, keeping Chinese buyers cautious.
The U.S. share of China’s soybean and LNG imports remains low—21% and 5.5%, respectively—and recent tariffs have sharply reduced import volumes.
Analysts expect no immediate rebound in U.S. commodity exports to China until further policy clarity or additional tariff cuts are achieved.

AI generated, for reference only

Who’s Who

Argus Media: According to the article, Argus Media is a provider of energy and commodity price information. Its analysts noted that even with lower U.S. agricultural tariffs, American farm products remain uncompetitive in China due to existing tariffs and competition from suppliers like Brazil. Argus analysts also stated that most U.S. LNG cargoes originally destined for China have been rerouted to Europe because of better pricing and lower risk.

Independent Commodity Intelligence Services: Independent Commodity Intelligence Services (ICIS) is referenced in the article as a provider of commodity market analysis. Specifically, Xu Fei, a senior LNG analyst at ICIS, comments on Chinese buyers’ reluctance to import U.S. LNG due to ongoing tariffs and uncertainty over future agreements. ICIS supplies industry insights and market intelligence to help stakeholders make informed decisions in the global commodities sector.

Sinochem Energy Co. Ltd.: Sinochem Energy Co. Ltd. is a major Chinese energy company. In the article, the company’s chief economist, Wang Haibin, stated that due to abundant crude oil in the global market, Chinese buyers are not motivated to purchase higher-cost U.S. oil with a 20% tariff. He also noted that reciprocal tariff reductions could help support global economic and shipping recovery while boosting oil and gas consumption.

AI generated, for reference only