Posted on May, 13, 2025 at 05:41 pm
US soybean, feed and grain organizations welcomed the announcement that the United States and China reached a 90-day trade deal that will temporarily cut tariffs and duties.
“Farmers across the soy-producing states are hopeful that during this time, a long-term Phase 2 agreement can be reached that addresses Chinese tariff and non-tariff barriers to trade,” said the American Soybean Association (ASA).
During the 90 days, the United States will cut tariffs imposed on Chinese imports to 30% and Chinese duties on US goods will fall to 10%.
In the ongoing trade battle between the two nations, the United States had imposed a minimum 145% tariff on Chinese exports, while China has raised its minimum tariff rate on imports from the United States to 125%. Select US agricultural imports to China faced steeper levies: wheat 140%, corn 140%, meat 135% to 145%, sorghum 135% and soybeans 135%.
While farmers want to play their part in supporting broad-based, long-term solutions, Caleb Ragland, ASA president and a soy farmer in Kentucky, said it’s not possible to sustain tariffs that are exponentially higher than those of the first China trade war.
“We hope that a deal can be reached in which China commits to robust purchases of US soybeans and other products very soon,” he said.
The tariff that remains in place on US soy is not inconsequential, he said, and still puts the United States at a disadvantage to competitors in Brazil and Argentina.
“That means China will turn to South America first for its purchases and only buy US soybeans when it absolutely must,” Ragland said.
The 90-day pause will end in August, right before harvest season.
“We need the administration to continue its negotiations with China to find a long-term, sustainable solution that removes retaliatory tariffs and protects market access for our agricultural products,” Ragland said.
In the most recent marketing year, US exporters shipped 46.1 million tonnes of soybeans to foreign markets, accounting for over $24 billion in sales. Of those exports, nearly 25 million tonnes of soybeans went to China. That volume represents 54% of US soybean exports and accounts for $13 billion in value for US soybean farmers.
China is also a top destination for many US animal food products and provides essential ingredients such as vitamins, said Constance Cullman, president and chief executive officer of the American Feed Industry Association.
“We are hopeful that the 90-day tariff pause will provide the breathing room needed for Chinese and US trade officials to reach a mutual agreement that benefits the US animal food industry and the agricultural economy,” she said.
In 2024, China was the third top export destination by value at $1.27 billion for the animal food industry. The US animal food industry imported $549 million in ingredients and animal food products including vitamin E, amino acids, dog and cat food, vitamin C and animal feed.
The US Grains Council (USGC) thanked President Trump and his administration for continuing to work with China to level the trade playing field.
“This 90-day window will allow more time for ongoing negotiations, positive news for both our countries,” the USGC said. “We hope it is the first step in a new trade relationship between China and the United States.”
Source: World Grain