Stock Markets May 16, 2026 11:33 AM

China, U.S. Signal Steps to Reopen Farm Trade Through Tariff Cuts and Market Access Progress

Beijing and Washington agree preliminary measures to reduce tariffs and address non-tariff barriers, while U.S. agricultural purchases resume

By Sofia Navarro ZS

China and the United States have reached preliminary understandings to expand bilateral agricultural trade by trimming tariffs and tackling non-tariff barriers and market access issues. The commerce ministry said the agreements are not yet final but will be completed as soon as possible. Beijing has already taken steps on U.S. beef-plant registrations and resumed purchases of certain U.S. farm goods, while U.S. officials expect substantial additional purchases in the coming years.

China, U.S. Signal Steps to Reopen Farm Trade Through Tariff Cuts and Market Access Progress
ZS

Key Points

  • China and the U.S. have reached preliminary agreements to reduce tariffs and address non-tariff barriers to expand two-way agricultural trade.
  • Bilateral farm trade dropped 65.7% year-on-year to $8.4 billion in 2025; a 10% additional levy on U.S. farm imports remains in place.
  • Beijing granted five-year registration extensions to 425 U.S. beef plants and approved new five-year registrations for 77 additional facilities, and the U.S. expects China to buy "double-digit billions" of dollars of U.S. farm goods over the next three years.

Overview

Officials from China and the United States announced an initial agreement to broaden agricultural trade by cutting tariffs and addressing market access and non-tariff barriers, China’s commerce ministry said after a summit in Beijing earlier this week. The ministry described the measures as "preliminary" and said they would be "finalised as soon as possible."

Trade levels and current levies

The ministry reiterated that China’s farm imports from the U.S. still face an additional 10% levy that was applied after last year’s rounds of reciprocal tariffs. Those duties were a key factor in a steep decline in bilateral farm trade, which fell 65.7% year-on-year to $8.4 billion in 2025, according to U.S. Department of Agriculture data cited by Chinese officials.

Scope and next steps

While Chinese authorities said both sides intend to promote two-way trade in a variety of goods - including agricultural products - through reciprocal tariff reductions, they did not identify specific products covered by the potential cuts. The commerce ministry said the sides agreed to "resolve or make substantive progress" on non-tariff barriers and market access obstacles as part of this effort.

Recent purchasing and commodity flows

China resumed buying some U.S. farm goods after an October meeting, and in doing so met a U.S.-stated commitment to purchase 12 million metric tons of soybeans by the end of February. Authorities reported additional purchases as well, including some U.S. wheat cargoes and large volumes of sorghum.

Market commentators are watching for a potential 10% cut in soybean tariffs, a move that could allow private Chinese crushers to re-enter procurement. During last year’s U.S. harvest, private crushers were largely sidelined and state crop traders became the dominant buyers.

"Tariff reductions on agricultural products would mark a normalization of China-U.S. farm trade, allowing commercial buyers to re-enter the market," said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

Regulatory and registration developments

On the regulatory front, China said it will address U.S. concerns over registration of beef processing facilities and the export of poultry from certain U.S. states. In a concrete step, Beijing granted five-year registration extensions to 425 U.S. beef plants whose registrations had lapsed last year, and it approved new five-year registrations for 77 additional U.S. facilities. These actions reverse restrictions that had largely shut those plants out of the Chinese market.

U.S. expectations on future purchases

U.S. Trade Representative Jamieson Greer said on Friday that the U.S. expects China to buy "double-digit billions" of dollars' worth of U.S. farm goods over the next three years. Neither side, however, has released detailed information on which products, the exact values or the volumes that would be involved.


Implications

The statements signal a potential easing of trade frictions that had sharply curtailed cross-border agricultural flows, but the arrangements remain preliminary and lack detailed product, price or volume schedules. Observers will watch for finalised agreements and concrete implementation steps from both sides.

Risks

  • Agreements are described as "preliminary" with limited public detail - final terms, specific products, volumes and values have not been released, creating uncertainty for agricultural exporters and commodity markets.
  • An additional 10% levy on U.S. farm imports remains in place for now, meaning the pace and scale of trade normalization depend on formal tariff reductions and implementation.
  • Non-tariff barriers and market access issues remain subject to negotiation - unresolved regulatory and registration questions could delay or limit resumption of commercial buying, affecting processors, exporters and grain traders.

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