WASHINGTON, D.C. (RFD NEWS) — The United States and China have released reciprocal lists of nonsensitive products worth about $60 billion each that will receive tariff cuts, with agricultural commodities among the U.S. goods included in China’s list.
According to Reuters, China says the two-month extension gives both sides additional time to assess the existing agreement and continue negotiations.
The extension runs through January 10.
China’s commerce ministry said the agreement is intended to strengthen trade cooperation between the two countries.
The U.S. list includes 1,619 categories of Chinese goods, while China’s list covers U.S. products ranging from agricultural commodities and timber to hair and personal care products and medical equipment. U.S. coal is also included.
Tariff rates on more than 90% of the products will be reduced to most-favored-nation levels, according to China’s commerce ministry. Those are the standard tariff rates generally applied under World Trade Organization rules.
For U.S. agriculture, the continued trade truce could provide more time to discuss agricultural purchases and market access.
The two countries are also expected to continue broader trade discussions as the extension remains in place.
Soybeans Left Out of Tariff Cuts
China has agreed to cut tariffs on a number of American farm products, but U.S. soybeans were left off the list.
The tariff relief covers products including corn, wheat, sorghum, meat, dairy, soy oil and soymeal.
Whole U.S. soybeans remain subject to an additional 10% tariff.
Chinese buyers have purchased more than 12 million metric tons of U.S. soybeans, but China has not publicly confirmed the 25 million-metric-ton annual purchase target announced by the White House.
The new tariff cuts do not have an effective date yet.
The American Soybean Association says it is disappointed U.S. soybeans were not included among the agricultural products receiving additional tariff relief:
