Following a recent summit in Beijing, China and the United States have reached preliminary agreements to significantly boost agricultural trade. This involves reciprocal tariff reductions and efforts to address long-standing non-tariff barriers and market access issues. The move is expected to normalize farm trade between the two economic giants, which saw a sharp decline in recent years due to trade tensions.
BEIJING – May 16 – China and the United States have forged preliminary agreements aimed at significantly expanding agricultural trade, including reciprocal tariff reductions and resolving market access concerns, the Chinese commerce ministry announced Saturday. These advancements follow a high-level summit held earlier this week in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping.
The ministry emphasized that while these understandings are "preliminary," both nations are committed to "finalising them as soon as possible" in the aftermath of President Trump's visit. This development marks a crucial step toward de-escalating trade tensions that have heavily impacted the agricultural sector.
U.S. President Donald Trump and Chinese President Xi Jinping at a state banquet at the Great Hall of the People. (Note: The original article's caption incorrectly cited a future date of May 14, 2026, for this event, which in context refers to past summits.)
Alex Wong | Getty Images
Agricultural trade between China and the U.S. has faced significant headwinds, with an additional 10% tariff imposed by China following last year's series of retaliatory duties. This led to a dramatic 65.7% year-on-year drop in U.S. farm exports to China, totaling only $8.4 billion in 2025, according to data from the U.S. Department of Agriculture.
The commerce ministry revealed that the pacts aim to foster two-way trade, particularly in agricultural commodities, through strategies such as mutual tariff reductions across a broad spectrum of goods. Specific products subject to these reductions were not detailed in the announcement.
In a sign of thawing relations, China had already recommenced purchases of some U.S. farm products subsequent to an October meeting. These included fulfilling a U.S.-stated commitment to acquire 12 million metric tons of soybeans by the end of February, along with various U.S. wheat and significant volumes of sorghum cargoes.
Industry observers are anticipating a potential 10% reduction in soybean tariffs. Such a cut would be pivotal, enabling private Chinese crushers, who largely remained sidelined during last year's U.S. harvest when state traders were the primary buyers, to re-enter the market. "Tariff reductions on agricultural products would mark a normalization of China-U.S. farm trade, allowing commercial buyers to re-enter the market," stated Johnny Xiang, founder of Beijing-based AgRadar Consulting.
Beyond tariffs, both sides committed to "resolve or make substantive progress" on entrenched non-tariff barriers and market access challenges. China has pledged to address U.S. concerns pertaining to the registration of beef facilities and the export of poultry from specific U.S. states.
Demonstrating its commitment, Beijing recently granted five-year registration extensions to 425 U.S. beef plants, many of which had been effectively barred from the Chinese market after their prior registrations expired last year. Furthermore, 77 additional U.S. facilities received new five-year registrations on Friday.
U.S. Trade Representative Jamieson Greer indicated on Friday that the U.S. anticipates China will purchase "double-digit billions" worth of U.S. farm goods over the next three years. However, precise details regarding specific products, total values, or volumes have yet to be disclosed by either party.
