China lifts tariffs on US soybeans and grain after fentanyl deal
China lifts tariffs on soy and grain from the US (photo: Getty Images)
China is lifting tariffs on agricultural goods from the United States following the US reduction of duties related to fentanyl, according to a report by Bloomberg.
China announced the cancellation of tariffs on several American agricultural goods in response to the United States' halving of fentanyl-related duties on Chinese exports.
According to the Ministry of Finance of the People's Republic of China, starting November 10, all tariffs imposed on March 4 on American soybeans, corn, wheat, sorghum, and poultry will be removed. The White House had previously reported this as well.
Beijing's decision came in response to executive orders signed by US President Donald Trump, which reduced fentanyl-related tariffs from 34% to 10%.
Both steps are part of a broader trade agreement between Trump and Chinese leader Xi Jinping, which is designed for one year and aims to stabilize relations between the countries after a prolonged period of economic confrontation.
According to the report, the easing of trade tensions has already affected global markets — soybean futures in Chicago rose by 1% during Asian trading.
China avoided US goods
China, which previously avoided American soybeans due to tariff disputes, has recently resumed purchases. Last year, Beijing purchased more than $12 billion worth of soybeans from the United States.
However, according to traders, even after the cancellation of some tariffs, American soybeans may remain subject to a 13% import duty in China.
According to the Chinese Ministry of Finance, the removal of tariffs aligns with "the fundamental interests of both countries and their people." It is intended to elevate bilateral trade relations to a new level.
China–US relations
Negotiations between Beijing and Washington are taking place amid both sides' desire to maintain economic balance and ensure access to key categories of goods.
The suspension of part of the tariffs is seen as a compromise solution that will allow the countries to return to constructive dialogue and avoid further escalation of the trade conflict.
Trump announced a decision to reduce tariffs on Chinese goods by 10%, resulting in an overall US tariff level of 47%. This is considered a step toward partially easing trade pressure between Washington and Beijing.
Earlier today, China also announced the suspension of an additional 24% tariff on American goods for one year. At the same time, the base tariff rate of 10% will remain in place.
