China and U.S. Set Stage for Agricultural Trade Revival

China and the U.S. have agreed on preliminarily expanding agricultural trade by reducing tariffs and addressing market barriers. This follows a meeting in Beijing, amid ongoing efforts to revive trade hit by past tariff hikes. The focus is on products like soybeans, beef, and sorghum.

In a significant move towards reviving agricultural trade, China and the United States have agreed to preliminary steps aimed at tariff reductions and tackling non-tariff barriers. According to China's commerce ministry, these developments follow the recent summit in Beijing facilitated by President Donald Trump's visit.

The bilateral agreement seeks to mend the relationship strained by past tit-for-tat tariffs, which led to a dramatic decline in agricultural trade. The U.S. Department of Agriculture indicates a sharp drop of 65.7%, valuing the trade at $8.4 billion in 2025. Both countries aim for reciprocal tariff reductions to promote the two-way exchange of agricultural products.

Market expectations include a potential 10% tariff cut on soybeans, possibly revitalizing U.S. trade with Chinese private crushers who were previously sidelined. Additionally, China aims to resolve issues regarding U.S. beef facilities and poultry exports. The U.S. Trade Representative anticipates substantial Chinese purchases of U.S. farm products over the next three years.