After leaders between the two countries met last week, China will suspend retaliatory tariffs on U.S. imports, including duties on some farm goods. While Beijing confirmed that this week, U.S. soybeans still face a 13 percent tariff. Reports said China’s tariff commission of the State Council is eliminating duties of up to 15 percent imposed on some U.S. agricultural goods on November 10. Tariffs of ten percent introduced in response to President Trump’s “Liberation Day” duties will stay in place.
Traders say that despite the tariff cut, importers looking at U.S. soybeans still face a tariff of 13 percent, which makes U.S. shipments more expensive for commercial buyers compared to Brazil soybean shipments. “We don’t expect any demand from China to return to the U.S. market with this change,” one trader at an international company. “Brazil is cheaper than the U.S., and even non-Chinese buyers are taking Brazilian cargoes.”
-NAFB