China Keeps Bulk Soybeans Out of Tariff Relief Deal With US
· Business · Fortune, Nikkei Asia
President Donald Trump and Chinese President Xi Jinping agreed to lower tariffs on $30 billion worth of goods in each direction following a summit in May. While China's concessions include 1,619 U.S. products such as beef, seafood, and medical gear, raw commodity soybeans were left out of the tariff relief package. Soybeans are a major U.S. agricultural export, with the Department of Agriculture reporting $16.5 billion in exports last year, and China serves as the largest buyer due to limited domestic arable land. In response to previous Chinese retaliatory tariffs in 2018, American farmers absorbed $9.4 billion in losses, hitting Midwest producers in Illinois and Iowa the hardest. To secure supply commitments, Trump previously struck a deal in November for China to purchase at least 25 million metric tons of soybeans annually from 2026 through 2028, followed by a White House announcement of an additional $17 billion in agricultural commitments.
Why it matters
American soybean farmers and Midwestern agricultural economies remain vulnerable to trade policy shifts because bulk soybeans are easily substituted with supplies from Brazil.
Read the original report — Fortune
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