China confirmed it will suspend retaliatory tariffs on select U.S. imports following last week’s meeting between President Donald Trump and Chinese President Xi Jinping. Starting November 10, Beijing will remove duties of up to 15% on certain American agricultural goods but maintain a 10% levy introduced earlier, along with a 13% tariff on U.S. soybeans.
The move signals progress in easing trade tensions between the world’s two largest economies after years of tariff disputes that disrupted global supply chains. Analysts say the decision shows both sides are committed to implementing their recent trade understandings.
U.S. soybean futures surged to their highest level since June 2024 amid hopes for renewed Chinese demand. However, the continued 13% tariff keeps American soybeans less competitive compared to Brazilian supplies. With Brazilian beans priced over $1 cheaper per bushel, traders expect limited Chinese purchases from the United States unless Beijing fully waives the duty.
Despite the tariff, the White House announced China’s intention to buy at least 12 million metric tons of U.S. soybeans by year-end and 25 million tons annually over the next three years. China has yet to confirm these commitments. Analysts suggest state grain buyer Sinograin may handle most purchases, as it operates outside commercial constraints and contributes to national reserves.
Before the leaders’ meeting, state-owned trader COFCO made symbolic U.S. soybean purchases from the 2025 harvest, signaling goodwill. In 2024, the U.S. accounted for just 20% of China’s soybean imports—down from 41% in 2016.
China’s cabinet also announced a one-year suspension of an additional 24% tariff on certain U.S. goods and the temporary removal of non-tariff measures imposed earlier this year. The decision highlights cautious optimism for improved U.S.-China trade relations while global markets await concrete signs of large-scale agricultural purchases.