China selectively lessens Ag tariffs on the United States

Agricultural cargo is subject to Ag tariffs

China has suspended the 24% levy it had added above the 10% reciprocal tariffs of March 10, 2025 on mainly Ag goods from the United States. The move confirms the flagging of a such a reprieve by the White House early November.

Confirmation came from Beijing’s tariff commission on November 5, which suspended the 24% additional levy on U.S.’ goods for a year, beginning November 10.

Although it will keep a basic 10% duty on stateside imports indefinitely, the commission will however cut Ag tariffs by a maximum 15%.

Benefitting agricultural goods include chicken, corn, sorghum and wheat, among others.

This goodwill gesture follows a move by the United States to cut fentanyl-related tariffs on China by 50%, per Bloomberg.

Fentanyl is a medicinal opioid that some Americans use to relieve pain, but its side effects are sometimes fatal.

When Trump had targeted the drug by imposing steep duty on it starting March 4, 2025, China had labeled the move ‘blackmail.”

The change of heart comes days after America’s struggling soybean farmers got relief after China booked a part of their current harvest.

But it appears a 13% duty and a base 3% tariff will still remain on soy imports, according to Reuters.

Easing Supply Challenges, Especially Soy  

All the same, analysts think that the bilateral deal signals a commitment to balance supply challenges following months of trade war.

China is keen to meet its lagging supply shortfalls in especially soybeans, of which it has traditionally bought half the U.S.’ exports. 

In 2024, for example, the Far East economic power absorbed $12.5 billion of the total $24.5 billion in U.S.’ soybeans shipments.

This however represented only 20% of China’s total soy imports versus the 41% it used to order from the U.S. before 2016.

Farmers in the American Midwest were earlier this season courting low prices and looming losses due to missing oriental purchases. 

Tariffs had slammed producers especially in Minnesota, who usually dispatch 60% of their output abroad.

The slashing or suspension of Ag tariffs between two major economies will likely recover trade confidence on the United States. This confidence is the topic of the statistics below that show how tariffs harm trade. 

Statistics on China-United States Ag Tariffs on Trade  

Punitive tariffs kill confidence in trade, and this is manifest in the effects of retaliatory duties between Beijing and Washington. These effects are measurable in terms of negative economical effects. For example in the 2018-19 trade war, the two countries absorbed $450 billion in overtaxed commodities. Besides, developed economies expend subsidies of up to $315 billion to protect their tariff-hit producers, per the UNCTAD.

In agriculture, the United States had to look for new markets for soybeans, like Türkiye, after China slapped 10% tariffs in March 2025. It then hiked them to double digits later. According to the U.S. Department of Agriculture (USDA), the earliest retaliatory tariffs on chicken, corn, wheat and cotton stood at 15% in March 2025. 

Did the two countries eventually modify their tariff stands?

Given the harm of tariffs on farmers, the White House on November 4, 2025 altered its stance on China.  President Trump suspended “heightened reciprocal tariffs” on China’s imports till November 10, 2026. He cited a need to boost the economy as one of the reasons for the action.  China also on November 5, 2025 suspended additional tariffs until November 10, 2026, and cut Ag duties on U.S.’ imports by 15%.