Beijing confirms tariff relief is coming for US agriculture
We finally have official confirmation that agriculture will be included in planned US-China tariff reductions.
On July 2, Chinese commerce ministry (MofCom) spokesperson He Yadong said China and the US had "agreed in principle to include relevant agricultural products in the reciprocal tariff reduction framework."
That makes sense. Since the White House announced that China had committed to buying USD 17 billion in US farm goods annually during US President Donald Trump's May visit, we've argued that Beijing's easiest path would be to remove the remaining tariffs on American agriculture and let trade rebound naturally.
Still, that approach was far from certain.
- US Treasury Secretary Scott Bessent previously suggested agriculture would not be included in the reciprocal tariff reductions.
- US Trade Representative Jamieson Greer has launched a public comment process on what Washington should include, complicating efforts to clarify Beijing's reciprocal reductions.
Get smart: Removing China's remaining tariffs on American agricultural products would make them much more competitive with South American exports.
- A surge in purchasing could follow.
What to watch: The USTR's public comment period closes July 10, with rebuttal submissions accepted through late July.
- That creates a window for the first detailed tariff rollback announcements to land in August or early September – with time to spare before Xi Jinping's planned US visit.