US-China Tariff Deal: 90% Of Goods Get Tariff Relief, But Soybeans Are Still Left Out

The United States and China have revealed more details of their planned $30 billion tariff arrangement, with more than 90 per cent of products in each side’s basket set to receive most-favoured-nation (MFN) tariff treatment. However, a key US agricultural export, soybeans, has been left out of China’s tariff-reduction list.

China’s Ministry of Commerce said on Monday that the two countries had reached consensus on a reciprocal tariff-reduction framework covering about $30 billion of imports from each side, based on 2024 bilateral trade values. More than 90 per cent of the products covered will have additional reciprocal tariffs removed and receive MFN rates, subject to each country completing its domestic legal procedures.

The arrangement emerged from economic and trade consultations held in New York and Washington between September 20 and 23, following the meeting between US President Donald Trump and Chinese President Xi Jinping in Washington.

The US-China Trade Council, established under an existing economic and trade consultation mechanism, will oversee the framework. Both countries will publish their respective tariff-reduction product lists and implement the cuts simultaneously after completing domestic procedures.

For US exports to China, the categories include agricultural products, fish and seafood, logs and wood products, cosmetics, medical devices and coal. China’s list includes consumer goods such as small household appliances, toys, holiday decorations, baby products and kitchen and bathroom items.

Agriculture has emerged as a major part of the arrangement, but the treatment of soybeans has exposed an important gap.

China is set to lower tariffs on US corn, wheat, sorghum, vegetable oils, meat, dairy products and other agricultural goods. US soybeans, however, remain subject to an additional 10 per cent tariff, according to Reuters.

The exclusion matters because soybeans are among the largest US agricultural exports to China. Chinese state-owned companies Sinograin and COFCO have already purchased more than 12 million metric tonnes of US soybeans, nearly half of the 25 million tonnes that the White House has said China committed to buy annually through 2028. China has not confirmed that purchase target in its latest announcement.

Energy is another component of the arrangement. The White House said China will import at least 10 million metric tonnes of US coal in 2027 and another 10 million tonnes in 2028.

The two countries have also established a US-China Investment Council to discuss investment opportunities, barriers and commercially significant concerns. An agriculture working group will address market access and regulatory issues, with its first meeting expected by the end of 2026.

The two sides are also continuing an artificial intelligence dialogue, with US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng expected to lead further discussions. The countries have separately agreed to establish a communication mechanism for AI-related incidents.