US, China move toward Farm Trade Reset in New Deal after Tariff War Slump

Us China Move Toward Farm Trade Reset In New Deal After Tariff War Slump

BEIJING – After years of trade tensions that sharply reduced agricultural flows between them, China and US agreed in principle to a preliminary deal aimed at reviving farm trade.

The plan includes lowering tariffs, easing market access barriers, and restoring commercial agricultural purchases that had been heavily disrupted during the trade war. While details are still being finalized, both sides are signaling a cautious move toward normalizing one of their most important trading relationships.

According to China’s commerce ministry, both sides have agreed in principle to expand agricultural trade by cutting tariffs and tackling long-standing non-tariff barriers and market access restrictions. The announcement follows high-level discussions in Beijing during U.S. President Donald Trump’s visit, with officials saying the framework will be finalized “as soon as possible.”

At the heart of the deal is a possible rollback of tariffs that have heavily restricted U.S. farm exports to China. Chinese imports of American agricultural goods currently face an additional 10% levy imposed during previous rounds of tit-for-tat trade disputes. Those measures helped trigger a dramatic collapse in trade flows, with U.S. Department of Agriculture data showing China’s farm imports from the United States plunging 65.7% year-on-year to just $8.4 billion in 2025.

Now, both Washington and Beijing are signaling a sharp shift. The two sides aim to promote expanded two-way agricultural trade through reciprocal tariff reductions across a wide range of goods, though neither government has yet revealed which products will be directly affected.

Market attention is already focusing on soybeans, where traders expect a potential 10% tariff cut. Such a move could reopen the door for China’s private soybean crushers, who were largely sidelined during the last U.S. harvest season when only state-backed buyers remained active.

“Tariff reductions on agricultural products would mark a normalisation of China–U.S. farm trade, allowing commercial buyers to re-enter the market,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

Signs of warming trade ties have already begun to emerge. China resumed purchases of select U.S. farm goods following an October meeting, including soybeans, wheat, and sorghum, in line with earlier commitments to buy large volumes of American agricultural products.

On the regulatory front, China is also moving to address U.S. concerns over market access. Beijing has pledged to resolve non-tariff barriers, including issues related to the registration of beef processing facilities and poultry export approvals from certain U.S. states.

In a significant step, Chinese authorities recently extended five-year registrations for 425 U.S. beef plants whose approvals had lapsed, effectively restoring their access to the Chinese market. An additional 77 U.S. facilities have also received new five-year registrations.

U.S. Secretary of Agriculture Brooke Rollins said on social media platform X that China has agreed to implement beef-related commitments, including resuming imports from 17 U.S. states.

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