US, China agree on $30B tariff reduction framework; expand farm trade

The US and China agreed to a $30 billion tariff reduction framework covering certain products, including agricultural goods, during the bilateral summit between US President Donald Trump and Chinese President Xi Jinping over Sept. 23-25, China's Foreign Ministry said in a statement Sept. 26.

"The two heads of state acknowledged the positive role of the China-US trade consultation mechanism and the results of the consultations between the two trade teams, including the establishment and advancement of mechanisms such as the Trade Council, the reaching of a $30 billion reciprocal tariff reduction arrangement," the ministry said in the statement.

The US-China Board of Trade was created after a bilateral summit between Trump and Xi over May 13-15 in Beijing.

"Under the Board of Trade, the two countries reached consensus on recommendations for more favorable tariff treatment for $30 billion of non-sensitive goods in each direction," the White House said in a fact sheet Sept. 25.

According to the White House fact sheet, the US will export agricultural goods, fish, and seafood.

"The Board of Trade also launched a working group focused on addressing market access barriers in the agricultural sector," it added.

The US and China have also agreed to extend their trade truce, which was scheduled to expire on Nov. 10, 2026, until Jan. 10, 2027, the US Treasury Secretary Scott Bessent said Sept. 23.

This comes after China's commerce ministry said Sept. 20 that China and the US agreed to discuss a framework to reduce reciprocal tariffs on certain products and resolve non-tariff barriers.

China levies a 10% reciprocal tariff on certain US-origin products in response to US import duties on Chinese goods.

China imposes a total import duty of 13% on US soybeans, including an additional 10% levy on top of the 3% most-favored-nation tariff. In comparison, Brazilian soybeans face only the 3% MFN duty.

China had agreed to purchase 25 million metric tons of soybeans from the US annually from 2026 through 2028, following the Busan summit on Oct. 30, 2025, and resumed purchasing US-origin soybeans in October 2025, following a five-month halt amid escalating tariff conflicts.

In May 2026, China committed to purchasing $17 billion worth of farm and food commodities from the US annually from 2026 to 2028.

So far in marketing year 2026-27 (September-August), China has committed to purchase 10.17 million mt of soybeans from the US, according to the US Department of Agriculture.

During MY 2025-26, US soybean exports fell 18.2% year over year due to lower shipments to China, according to USDA data. US soybean sales to China in MY 2025-26 were down 45% year over year at 12.8 million mt.

As of Sept. 17, 2026, the US sold 7,800 mt of beef in MY 2026 (January-December), compared with 35,000 mt of beef in the same period in MY 2025, USDA data showed.

In MY 2025, the US exported 35,362 mt of beef to China, down 73.6% year over year, the USDA data showed.

Platts, part of S&P Global Energy, assessed the SOYBEX China CFR flat price at $589.09/mt Sept. 25, down $8.45/mt day over day.

Platts assessed US SOYBEX FOB at $528.74/mt Sept. 25, down 19 cents/mt day over day.

Platts assessed 90 CL beef CIF US at $7,003/mt Sept. 25, and 95 CL beef CIF US at $7,694/mt Sept. 25, both unchanged day over day.