China temporarily canceled some tariffs on American goods

China partially lowers tariffs on US goods, but soybeans remain expensive

China announced a partial rollback of tariffs on US agricultural products, but tariffs on soybeans remain high. The reduction will have a limited impact on the recovery of trade in this product between the two countries.

The Chinese government stated that from November 10, it will suspend an additional 24% tariff on US goods imposed in April, aiming to ease tensions in trade relations with the US. However, China maintains a 10% tariff in response to the sanctions imposed by the US during Donald Trump’s administration. This decision is part of a broader strategy to stabilize trade relations between the two countries, Reuters reports.

The removal of tariff restrictions on some US agricultural products, which were introduced at a rate of up to 15%, would reduce the cost of these products for Chinese buyers. However, tariffs on soybeans remain high—Chinese buyers of this product will have to pay 13%, considering the existing base tariff of 3%. As a result, US soy imports remain less attractive compared to Brazilian counterparts. Currently, China is the world’s largest buyer of agricultural products, and in 2016 it imported soybeans worth 13.8 billion dollars.

Differences in the tariff policies of the two countries partially triggered a nearly two-year trade war between the nations during Trump’s tenure, significantly impacting global supply chains. Recent negotiations between Donald Trump and Chinese leader Xi Jinping have reduced tensions, but experts note that soybean trade is unlikely to quickly return to normal levels.

China’s decision could have consequences for global agricultural markets, including the demand for Brazilian goods, which have proven to be more economically advantageous. It remains unknown whether China will return to traditional suppliers from the United States in the near future.