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China has announced tariff cuts on a wide range of US agricultural products including corn, wheat and dairy items apart from meat, but has excluded soybeans, its largest US agricultural import, from the list released by the Chinese Commerce Ministry on Monday.
The move comes as China and the US have released parallel 30-for-30 product lists to consider tariff reductions and expand market access. The Chinese list includes products such as sorghum, vegetable oils and meals, including soyoil and soymeal, as well as meat, dairy products and agricultural goods. US soybeans will continue to face an additional 10 per cent tariff. Traders have said the tariff is too high for private soybean crushers to absorb, even as Chinese state-owned buyers have increased purchases, according to a Reuters report. The list of goods entering the US contains 77 items, including fireworks, household products, sporting equipment and toys, according to documents released by both governments. The two countries have also agreed to set up a trade council. According to Reuters, its first task will be to discuss reciprocal tariff cuts on USD 30 billion worth of products to support stable economic and trade ties. Chinese state-owned agricultural companies Sinograin and COFCO have purchased more than 12 million metric tonnes of US soybeans. This is nearly half of the 25 million tonnes that the White House said China had committed to buying annually through 2028, Reuters reported. According to Reuters calculations, trade in agricultural and related products covered by Mondays tariff-cut list was worth about USD 17 billion in 2024. This is broadly in line with Chinas reported purchase commitment when soybeans are excluded. In May, the White House said China had agreed to purchase USD 25 billion worth of US agricultural products annually through 2028. However, China has not confirmed any specific purchase target. A trader at an international company that sells soybeans to China said state-owned firms are expected to continue buying US soybeans.The trader also said lower tariffs on other agricultural products could help China meet the reported USD 17 billion purchase commitment. US soybeans are not very competitive on price even if the tariffs were lowered, the trader said, according to Reuters. Chinese President Xi Jinping had visited US from September 23 to 25 for summit meeting with US President Donald Trump. This was their second meeting this year. (ANI)
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