China partially eliminates duties on US agricultural products

China has announced the partial removal of retaliatory tariffs on several US agricultural commodities, including soybeans, corn, wheat, sorghum, and poultry. The Ministry of Finance confirmed that duties imposed on March 4 will be lifted starting November 10. The decision is part of a broader trade pact between Beijing and Washington aimed at stabilizing relations between the world’s two largest economies after a period of escalating tensions.

At the same time, China’s Ministry of Commerce said it will remove 15 American firms from its export control list and take 10 others off the “unreliable entities” list. Beijing will also lift its ban on the import of DNA sequencing equipment from Illumina Inc. These steps follow US President Donald Trump’s executive orders to cut fentanyl-related levies on Chinese goods and extend tariff relief on certain Chinese exports.

The easing of trade restrictions has revived optimism about renewed agricultural trade between the two countries. Chicago soybean futures rose by nearly 1% in Asian trading, reflecting expectations of increased US exports to China. After a year of strained relations, Chinese buyers had shifted their purchases to South America but recently resumed buying American soybeans ahead of the US–China summit in South Korea. China imported more than $12 billion worth of US soybeans last year.

China’s trade envoy, Li Chenggang, said at a meeting with a US delegation in Beijing that recent disruptions in agricultural trade were caused by American tariffs. “The two sides complement each other well and have significant room for cooperation,” he said. In an official statement, the Finance Ministry noted that halting part of the tariffs “serves the fundamental interests of both countries and their peoples, meets the expectations of the international community, and will help elevate bilateral economic and trade relations.”

However, traders estimate that US soybeans will still face a 13% import duty even after the tariff reduction. Beijing will also scrap an additional 15% levy on US wheat, and a major Chinese buyer is reportedly considering its first purchase of American grain in over a year. Separately, China confirmed that a 24% tariff on all US goods will be suspended for one year, starting at 1:01 p.m. Beijing time on November 10, mirroring the recent executive order signed in Washington.

Tags: duties, China, soybean, USA