China has signaled plans to reduce tariffs on selected US agricultural products and expand imports of American farm goods under a new trade understanding reached after talks between US President Donald Trump and Chinese President Xi Jinping in Beijing last week.
The Chinese Ministry of Commerce said both countries had “in principle” agreed to include agricultural products within a reciprocal tariff reduction framework aimed at boosting bilateral trade. Although Beijing did not specify which products would be covered, the announcement is being viewed as a significant step toward easing tensions that have disrupted agricultural trade between the two countries in recent years.
The statement followed a White House announcement that China had agreed to purchase at least $17 billion worth of US agricultural products annually during 2026, 2027 and 2028. The commitment comes in addition to an earlier soybean agreement reached in October 2025.
The latest understanding could push Chinese imports of US agricultural products back toward historic highs. However, fulfilling such commitments would likely require China to roll back tariffs imposed during the prolonged trade conflict between the two countries.
According to the White House, the agreement also includes expanded market access for American agricultural sectors. China has renewed registrations for more than 400 US beef processing facilities and agreed to work with US regulators to lift suspensions on additional beef plants. Beijing has also resumed poultry imports from US states certified free from highly pathogenic avian influenza by the US Department of Agriculture (USDA).
The agricultural agreement builds upon an earlier deal signed in October 2025, under which China committed to buying 12 million tonnes of US soybeans during the 2025-26 marketing year and 25 million tonnes annually over the next three years.
While the earlier soybean arrangement was based on fixed volumes, the new understanding is tied to a monetary target, suggesting broader purchases across multiple agricultural commodities.
China’s Commerce Ministry also confirmed that the two sides would establish a Trade Council and an Investment Council to oversee economic relations and discuss tariff reductions on products of mutual interest. Officials said the tariff reductions could apply to goods worth nearly $30 billion. China also said discussions would continue on agricultural biotechnology issues raised by Washington, although no details were disclosed.
The developments sparked a strong rally in global grain markets earlier this week. Corn futures on the Chicago Mercantile Exchange (CME) surged nearly 5%, while wheat and soybean futures also posted sharp gains as traders anticipated stronger Chinese demand for US farm commodities.
The renewed focus on agricultural trade marks a notable shift after years of tariff disputes that severely disrupted US farm exports. During the earlier trade war launched in 2018, China imposed retaliatory tariffs on several American agricultural commodities, sharply reducing US soybean shipments.
According to USDA estimates, the 2018 trade conflict cost US agriculture more than $27 billion, with soybeans accounting for the majority of the losses. US soybean exports to China reportedly fell 75% in 2025 compared with the previous year amid renewed tariff tensions.
Although several implementation details remain unresolved, both governments described the latest discussions as constructive and said negotiations would continue to finalize the framework for expanded agricultural trade cooperation.