China Excludes $16.5 Billion US Soybeans From $30 Billion Tariff Relief Deal
Updated
Updated · Fortune · Sep 28
China Excludes $16.5 Billion US Soybeans From $30 Billion Tariff Relief Deal
3 articles · Updated · Fortune · Sep 28
Summary
$30 billion in planned two-way tariff relief left out raw U.S. soybeans, even though China included 1,619 other American products such as beef, seafood, cosmetics and medical gear.
$16.5 billion in U.S. soybean exports last year underscores the omission's weight: China is the key buyer, and weaker Chinese demand can quickly depress cash prices for Midwest farmers.
Brazil's 71% share of China's soybean imports helps explain the carveout, giving Beijing room to preserve a cheaper major supplier rather than shift heavily back to U.S. bulk beans.
The exclusion also preserves leverage for later talks, despite China's separate pledge to buy at least 25 million metric tons of U.S. soybeans annually in 2026-2028 and its recent 1 million-ton purchase.