NextFin news, on November 5, 2025, China’s Ministry of Finance officially confirmed the suspension of the 24% additional tariffs imposed on various US goods effective from November 10, 2025, for a one-year period. This move aligns with the executive orders signed by US President Donald Trump deploying a reciprocal reduction of US tariffs on Chinese imports, notably those linked to fentanyl-related trade measures, scaling down rates from approximately 34% to 10%. However, China notably maintained its additional 10% tariff on soybeans, rejecting full removal for this critical agricultural commodity despite easing tariffs on other farm products such as corn, wheat, sorghum, and chicken.
The tariff suspension decision was finalized following bilateral talks between President Xi Jinping and President Trump in late October in South Korea, during the Asia-Pacific Economic Cooperation (APEC) summit, marking a significant de-escalation in a tariff war that saw duties escalate to prohibitive triple-digit levels on certain products earlier in the year. China’s announcement detailed that the 24% tariff freeze will become effective immediately after the expiration of the current tariff imposition deadline, while continuing a 10% levy on selected US goods.
This calibrated tariff adjustment emerges as part of a broader truce aimed at stabilizing Sino-American trade relations amid persistent tensions concerning export controls, rare earth elements, and regulatory disputes. While the suspension covers a wide range of US products, the sustained tariff on soybeans reflects China's strategic protection of its domestic agricultural sector and food security considerations. Last year, China imported over half of all US soybean exports, amounting to approximately $12 billion in trade value, signifying the sector’s economic and political weight.
The decision comes amid notable shifts in trade patterns, with Chinese buyers having diverted purchases to South American producers during heightened trade tensions earlier in 2025. So far this year, restrictions and tariffs on soybeans have considerably dampened US exports to China, negatively affecting American farmers who form a key constituency supportive of President Trump’s administration. The sustained tariff on soybeans is therefore indicative of China’s strategic bargaining position in trade negotiations, leveraging a commodity that is critical for both countries but sensitive in domestic political terms.
Analyzing the underlying factors, China’s tariff suspension but selective retention on soybeans can be seen as a dual-strategy approach. It signals goodwill and commitment to rapprochement by easing tariffs broadly while preserving leverage on a sector that matters materially to US agricultural interests. This approach balances short-term economic incentives with longer-term geopolitical signaling and domestic considerations.
Economically, the suspension is poised to restore some normalcy and predictability to bilateral trade flows, boosting sectors in both economies that had suffered from tariff-induced disruptions. For instance, the lifting of tariffs on products such as corn, wheat, chicken, and sorghum could rejuvenate agricultural exports and supply chains affected by reciprocal penalties. Additionally, the suspension helps moderate inflationary pressures linked to higher import costs and can ease input prices for US exporters in affected industries.
From a strategic perspective, maintaining the 10% tariff on soybeans preserves a critical tool for China in ongoing negotiations, allowing Beijing to maintain bargaining power in the agricultural domain, a sector deeply interwoven with domestic employment and rural political stability in both countries. This selective tariff policy suggests that while economic pragmatism prevails in many sectors, agricultural trade remains a sensitive and contested front.
The trade détente coincides with mutual concessions beyond tariffs, including China’s agreement to suspend restrictions on rare earth technology exports and the US halting export controls affecting affiliates of certain blacklisted foreign companies, reflecting a broader, albeit cautious, improvement in bilateral trade relations.
Looking forward, the one-year suspension effectively sets a temporal framework for further negotiations. It offers both sides a window to solidify trade détente, build trust, and potentially resolve more contentious issues such as intellectual property rights, technology transfer, and market access. However, the retention of soybean tariffs indicates that agricultural trade tensions may persist as a potential flashpoint in future discussions.
Market implications suggest an immediate positive sentiment for US exporters benefiting from tariff relief, while soybean suppliers will likely continue to face uncertainties. The partial tariff rollback will also influence global commodity markets, particularly soybeans, where supply reallocation between the Americas affects global prices and trade flows.
In conclusion, China's measured suspension of some US tariffs, coupled with the maintained elevated tariff on soybeans, illustrates a strategic balancing act aimed at fostering trade stability without conceding strategic economic leverage. This development marks a cautiously optimistic phase in US-China economic relations under President Donald Trump’s administration, yet it underscores enduring complexities in agricultural trade that could influence bilateral dynamics throughout 2026 and beyond.
According to Reuters, this tariff adjustment is a direct outcome of the evolving Sino-US negotiations and the executive actions taken by President Trump, reflecting a significant recalibration of trade policies between the world’s two largest economies amid competitive and cooperative tensions.
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