China and U.S. move toward tariff cuts on agricultural goods

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U.S. and China target tariff cuts

Highlights

China and the U.S. are preparing to lower tariffs on some agricultural goods.
Beijing says the goal is to expand two-way agricultural trade.
China has pledged to buy 25 million tons of U.S. soybeans a year through 2028.
Actual soybean commitments remain far below the annual target.

Farm trade moves back into focus

According to Bloomberg, China’s Ministry of Commerce said on Thursday that, following recent trade consultations, the two countries had agreed in principle to include some agricultural products in a reciprocal tariff reduction framework. Ministry spokesperson He Yadong noted that Beijing and Washington had also set a broad goal of expanding two-way agricultural trade, although he did not name specific products or provide a timeline.

The remarks followed a phone call between Chinese Foreign Minister Wang Yi and U.S. Secretary of State Marco Rubio. According to China’s foreign ministry, the two sides agreed to expand areas of cooperation, narrow differences, and manage risks.

The tariff talks are part of a wider effort to stabilize relations after years of trade disputes that hit farmers, food companies, and importers on both sides. China’s commerce ministry previously said the two countries would discuss reciprocal tariff reductions through a trade council framework, with further consultations planned between their economic and trade teams.

Big pledges, limited purchases

The agricultural commitments are large on paper. China has pledged to buy at least 25 million tons of U.S. soybeans a year through 2028. The White House has also said China will buy at least $17 billion annually in additional U.S. agricultural products in 2026, 2027, and 2028.

So far, however, buying has lagged. Chinese commitments for the marketing year beginning in September amount to only about 200,000 tons of soybeans, according to the details reported in the source material. Higher tariffs still in place on U.S. products, political uncertainty, and weak margins for private crushers have kept many buyers cautious.

That gap between pledges and purchase orders is the main issue for U.S. exporters. Tariff reductions could improve the economics of buying American soybeans, corn, pork, and other farm goods, but companies are expected to base purchases on market prices and demand rather than political targets.

A test for the trade truce

The agricultural tariff discussions matter because farm trade has often been one of the most sensitive parts of U.S.-China relations. For American farmers, China remains a crucial buyer. For Beijing, tariff flexibility could help secure supplies while keeping the broader trade truce intact.

The numbers show both the promise and the risk. Annual soybean commitments of 25 million tons and additional farm purchases of at least $17 billion would represent a meaningful channel for U.S. exports. But with current soybean commitments at only about 200,000 tons, tariff reductions will need to translate into real orders before the agreement changes market conditions. Until then, the truce remains more of a framework than a fully functioning trade recovery.

We also reported the U.S. tariff plan targets 60 economies over forced labor rules.

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