China to cut tariffs on US grains and vegetable oils, while soybeans remain excluded

China and the US have agreed to reduce tariffs on around $60 bln worth of goods traded between the two countries. Under the arrangement, each side identified roughly $30 bln of non-sensitive goods that will receive more favourable tariff treatment.

China plans to lower duties on a range of US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals. Soybeans, however, were not included in the list of products eligible for tariff reductions.

For the US, the new terms are expected to improve access to the Chinese market for around 30% of US exports to China. The agricultural part of the agreement also includes the creation of a dedicated working group to discuss two-way market access and regulatory issues.

The agreement comes as China has resumed large-scale purchases of US soybeans. Beijing also plans to increase purchases of other US agricultural products, which could support US grain exports and shipments of processed agricultural products.

The US and China also extended their trade truce through January 10, 2027. This gives both sides more time to negotiate further reductions in trade barriers and expand bilateral trade.

Tags: USA, dairy products, China, corn, soybean, meat, oilseeds, wheat