China announced a one-year suspension of the 24% additional tariffs it imposed in April on U.S. imports, while retaining the 10% duties that were also implemented as a countermeasure to President Donald Trump’s ‘Liberation Day’ tariffs. The move, confirmed by Beijing’s Cabinet on Wednesday, represents a partial rollback as trade negotiations between the two economic giants show signs of improvement.
The State Council’s tariff commission further revealed plans to eliminate tariffs of up to 15% on selected U.S. agricultural products, effective November 10. This adjustment aligns with a previous release from March that detailed a list of American goods subject to Chinese import duties. However, the tariff reduction is not comprehensive, as Chinese importers of U.S. soybeans remain subject to a combined 13% tariff, inclusive of a pre-existing 3% base levy. Commodity traders report that the elevated costs render U.S. soybeans less competitive compared to Brazilian supplies.
Traditionally, soybeans stood as the leading U.S. export to China. However, Chinese purchases of American crops have sharply declined this year, resulting in significant export losses for U.S. farmers. According to Chinese customs data, the United States accounted for just 20% of China’s soybean imports in 2024, a significant drop from 41% in 2016.
Sentiment improved last week after a meeting between President Trump and Chinese President Xi Jinping in South Korea. The leaders’ discussions appeared to ease concerns that prolonged trade tensions might derail ongoing negotiations and further disrupt global supply chains, the sources said.
Among the immediate outcomes was a move to cut tariffs on chemical inputs for fentanyl from 20% to 10%, effective immediately—a policy shift aimed at addressing concerns over the opioid crisis. Trump also noted that China would resume substantial purchases of US soybeans, calling it an appreciated gesture. Additional measures announced by Trump include an overall reduction in US tariffs on Chinese goods from 57% to 47%.
