BEIJING, September 28, 2026 (DAILYNWZ) — China will cut tariffs on a broad range of U.S. agricultural products, including corn, wheat, meat and dairy, but will keep soybeans outside the tariff-reduction package, leaving a key point of friction in the trade relationship unresolved.
The Commerce Ministry’s list, issued Monday after last week’s meeting in Washington between Chinese President Xi Jinping and U.S. President Donald Trump, covers sorghum, vegetable oils and meals including soybean oil and soybean meal, as well as meat, dairy products and other agricultural goods.
U.S. soybeans, however, will continue to face an additional 10% tariff. Traders have said the duty remains too high for private Chinese soybean crushers to absorb, even as state-owned buyers have stepped up purchases.
“Despite the soybean being a non-sensitive item in trade, the political significance of China’s soybean purchase is enormous and carries major political implications,” said Feng Chucheng, founder and partner at Hutong Research.
He said the separate treatment of soybeans gives Beijing leverage in dealing with Washington, particularly ahead of the U.S. midterm elections.
China’s state-run agricultural companies Sinograin and Cofco have bought more than 12 million metric tons of U.S. soybeans, nearly half of the 25 million tons the White House says Beijing has committed to purchase annually through 2028.
The agricultural and related products covered by Monday’s tariff list accounted for about $17 billion in trade in 2024, roughly matching the annual purchase commitment cited by the White House when soybeans are excluded.
The White House said in May that Beijing had agreed to buy $17 billion worth of those products each year through 2028. China, however, has not confirmed such a specific annual purchase target.
The two countries have also agreed to establish a trade council. Its first task will be to discuss reciprocal tariff reductions covering $30 billion worth of goods, part of efforts to stabilize economic and trade ties.
A trader based in Asia at an international company that sells soybeans to China, speaking on condition of anonymity, said state-owned companies were expected to continue buying U.S. soybeans. The tariff cuts on other agricultural products should also help China meet the $17 billion commitment, the trader said.
But lower tariffs alone may not resolve the competitive challenge for U.S. soybean suppliers. The trader said U.S. soybeans remained relatively uncompetitive on price even if the tariffs were reduced.