U.S. and China to Lower Mutual Tariffs... Trump’s Priority Soybeans Excluded

Tariffs to Be Reduced on $60 Billion Worth of Goods
U.S. Agricultural Products and Coal, Chinese Toys and Home Appliances Included

The United States and China have agreed to lower tariffs on goods worth a total of $60 billion ($30 billion from each side, equivalent to approximately 81.5 trillion won) as part of their summit agreement. China included U.S. agricultural products and coal in its list, while the United States included Chinese toys and appliances. However, soybeans—an item of great interest to the U.S. agricultural sector—were excluded from China's tariff reduction list.

U.S.-China Summit. Screenshot from White House live broadcast

According to China's Ministry of Commerce and the U.S. Trade Representative (USTR), both sides released the lists of items subject to tariff reductions on the 28th (local time). China's Ministry of Commerce stated that the two countries agreed on the lists during the 8th Economic and Trade Negotiations held in New York and Washington from September 20 to 23.

China's list of tariff reduction targets includes U.S. agricultural products, personal care items, medical devices, and coal. The United States will lower tariffs on Chinese toys, appliances, baby products, kitchen and bathroom goods, and holiday gift items. Both countries have agreed to abolish all additional tariffs imposed on more than 90% of the targeted products, applying only Most Favored Nation (MFN) rates. Tariff reductions will be implemented simultaneously after each country completes its domestic procedures.

With soybeans excluded from China's list, U.S. soybeans will continue to face a 10% tariff. China had agreed to purchase 25 million tons of U.S. soybeans annually during the U.S.-China summit last October. Despite the maintenance of tariffs, purchases are currently being made mainly by Chinese state-owned enterprises.

U.S. soybean exports are a sensitive issue for President Donald Trump as the midterm elections approach. There is speculation that China may have left the soybean issue as a separate bargaining card. Peng Chuqing of Hong Kong-based Hutong Research Institute told foreign news outlets, "China's purchases of U.S. soybeans have significant political implications," and noted that continuing soybean negotiations separately provides China with added negotiating leverage against the U.S.

U.S. coal is also included in China's list of items for tariff reduction. China's Ministry of Commerce stated that this measure would help expand imports of U.S. coal in 2027 and 2028. Previously, the White House announced that China would import 10 million tons of U.S. coal annually for two years, but China's announcement did not specify an amount.

The two countries also plan to establish a working-level channel for agricultural consultations. The Ministry of Commerce of China and the USTR will jointly lead an agricultural working group under the U.S.-China Business Council, with the first meeting scheduled before the end of this year. Consultations will also continue on issues such as financial services institutions' operations and branch establishment, investment barriers, and the expansion of direct flights between the two countries. The next dialogue on artificial intelligence (AI) is scheduled to take place before the end of November.

Although this tariff reduction agreement is a result of Chinese President Xi Jinping's visit to the U.S., its significance is relatively limited in the context of overall bilateral trade. Bloomberg News pointed out that the $60 billion in targeted tariffs represents only a portion of the roughly $415 billion in annual U.S.-China trade.

The two countries have also agreed to extend the "trade truce," previously set to end on November 10, by two months until January 10 next year, and will discuss the possibility of further extensions through high-level consultations by the end of the year.

This content was produced with the assistance of AI translation services.