China to slash US farm tariffs, but soybeans remain under pressure

China has signalled its intention to cut tariffs on a range of US farm goods as part of efforts to ease trade tensions between the world's two largest economies. The move represents a partial concession in a long-running commercial dispute that has impacted agricultural trade flows across Asia and beyond.

However, US soybeans—a key commodity for the Chinese market—will remain subject to an additional 10% tariff under the revised arrangement. This levy has drawn concern from private crushers and traders who process soybeans into meal and oil for domestic consumption and export.

Industry participants have cautioned that the 10% surcharge is prohibitively high, potentially squeezing already thin margins in a sector critical to feed production across China and Southeast Asia. Traders have warned that the tariff level may force processors to seek alternative suppliers or reduce crushing volumes, with ripple effects on regional commodity markets.

The tariff adjustment comes amid broader negotiations between Washington and Beijing to normalise trade relations. While the reduction on other agricultural products signals movement on the trade front, the exclusion of soybeans from meaningful relief suggests significant sticking points remain in the discussions.