Soybean Trade Thaws as China, U.S. Scale Back Tit-for-Tat Tariffs
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China and the United States have agreed to expand agricultural trade, a deal that could revive large-scale Chinese purchases of American soybeans and ease a dispute that disrupted global commodity flows earlier this year.
On Thursday, a spokesperson from China’s Ministry of Commerce said Washington would lift a 10% tariff imposed on Chinese goods in connection with concerns over fentanyl. In return, China will continue to suspend its previously announced 24% retaliatory tariff for another year and adjust other countermeasures accordingly. The two nations also agreed to extend certain existing tariff exemptions.
Following a meeting with Chinese President Xi Jinping in South Korea on Thursday morning, U.S. President Donald Trump wrote on social media that the Chinese leader had authorized renewed purchases of “massive amount” of soybeans, sorghum and other American crops. “Our Farmers will be very happy,” Trump wrote.
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- China and the US agreed to expand agricultural trade, with tariff reductions and renewed Chinese purchases of US crops like soybeans.
- China bought 22.1 million tons of US soybeans in 2024, but US share of Chinese imports fell below 20% after new tariffs, as Brazil’s share rose to 75.7%.
- Traders remain cautious due to limited policy details and undisclosed final tariff rates on US agricultural goods.
- Argus
- Argus is an international energy and commodity price assessment agency. According to Argus, China stopped purchasing US soybeans in May, leading to a dramatic shift in global commodity flows. Argus also reported that Brazil's harvest enabled China to secure large soybean shipments, and China purchased a significant volume of Argentine soybeans after export tariffs were removed. Argus notes that traders are awaiting negotiation results and further policy details.
- 2024：
- China was the top export market for U.S. agricultural products, purchasing 22.1 million tons of American soybeans.
- March 2025：
- A new round of tariffs was imposed, dramatically changing global soybean flows.
- May 2025：
- China stopped purchasing U.S. soybeans.
- By the first nine months of 2025：
- U.S. soybeans accounted for less than 20% of China’s total imports, while Brazil’s share grew to 75.7%.
- September 22, 2025：
- Argentina temporarily removed export tariffs on agricultural products; within 72 hours, China bought 2.3 million tons of Argentine soybeans.
- September 2025 - November 2025：
- Brazil's export season enabled China to secure large shipments of soybeans from South America.
- 2025-10-30：
- On Thursday, China’s Ministry of Commerce announced Washington would lift a 10% tariff on Chinese goods and China would suspend its 24% retaliatory tariff for another year, following a meeting between Xi Jinping and Donald Trump in South Korea.
- 2025-10-30：
- U.S. President Donald Trump announced that China would renew purchases of large amounts of American agricultural products.
- 2025：
- Diplomatic talks were held in Kuala Lumpur despite lingering market uncertainty.
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