According to the agreement, both sides will reduce existing tariffs by 115%, leaving the base rate at 10%. In particular, the US will reduce tariffs on Chinese imports from 145% to 30%, while China will reduce corresponding tariffs on US goods from 125% to 10%. These changes will take effect on 14 May 2025.
China will also suspend or remove a number of non-tariff restrictions, including the 34% tariff imposed on 4 April, while the US will remove additional tariffs imposed on 8–9 April. At the same time, previous tariffs will remain in place, including those under Sections 301 and 232, as well as tariffs related to the fentanyl emergency.
The White House notes that the agreement creates a framework for further negotiations on opening the Chinese market to American exports. In the future, the dialogue will be led by Vice Premier He Lifeng, US Secretary of the Treasury Scott Bass and Trade Representative Jamie Greer. The talks will take place in China, the US or a third country.
For the American agricultural sector, this pause is a long-awaited relief. Due to high tariffs, China cancelled pork purchases from the US last month and reduced imports of beef, corn, wheat and cotton.
The US Meat Export Federation (USMEF) welcomed the agreement, calling it ‘a first step toward restoring access to the Chinese market for American pork and beef.’
The American Soybean Association (ASA) also expressed cautious optimism. Last year, 54% of all American soybeans were exported to China, worth $13 billion. They hope that within 90 days, a long-term ‘Phase 2’ trade agreement will be concluded, which will provide for the removal of not only customs but also non-tariff barriers.
However, as ASA President Caleb Ragland noted, Brazil and Argentina, the US's competitors in the soybean market, are not burdened by such tariffs. Therefore, the US needs to continue to work hard to find a long-term and fair solution.
PigUA.info based on materials from feedstuffs.com