Beijing eases tariff policy towards the US: what’s behind the new trade truce
5 November 08:57
China has announced the suspension of an additional 24% of customs tariffs on US goods for one year, leaving the basic 10% restriction in place. This was reported by "Komersant Ukrainian" with reference to Reuters.
This decision was one of the first signals of a possible easing of trade tensions between Beijing and Washington after several years of tariff confrontation.
The decision of the tariff commission
According to the Tariff Commission of the State Council of the People’s Republic of China, the temporary abolition of additional duties will take effect on November 10.
The move was the result of a meeting between Chinese President Xi Jinping and US President Donald Trump last week.
Softening of tariffs on agricultural products
At the same time, the basic 10% tariff on all US goods remains in effect.
In addition, the Tariff Commission of the State Council of China announced the abolition of duties of up to 15% on a number of American agricultural products.
This step is seen as an attempt to stabilize trade relations between the world’s two largest economies.
However, soybean imports from the US remain unprofitable
Despite the partial easing of tariff policy, imports of U.S. soybeans to China are still subject to a 13% duty (including the basic 3%).
Traders note that under such conditions, U.S. supplies remain too expensive compared to Brazilian supplies, so commercial purchases remain minimal.
Before the trade war in 2017, soybeans were the largest U.S. export to China, worth $13.8 billion in 2016. But now the situation has changed: according to customs data, in 2024, only 20% of soybeans were purchased by China from the United States, while in 2016 it was 41%.
Why it is important
Last week’s meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea eased tensions between the two countries.
Investors on both sides of the Pacific Ocean took the meeting as a signal of a possible resumption of trade dialogue after years of confrontation that disrupted global supply chains.
However, the Chinese side refrained from commenting in detail on the agreements reached.
A symbolic gesture and market doubts
The day before the summit, the Chinese state-owned company COFCO purchased three shipments of U.S. soybeans. Analysts interpreted this as a gesture of goodwill – an attempt to demonstrate Beijing’s willingness to avoid further escalation of the trade conflict.
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However, market participants remain cautious.
“We don’t expect China’s demand for U.S. soybeans to recover even after these changes. Brazil is cheaper, and even non-Chinese buyers are choosing Brazilian supplies,” said a trader at an international trading company.
Balance between compromise and influence
Analysts note that the suspension of some tariffs is a compromise solution that allows the parties to maintain economic balance and avoid further escalation of the trade war.
At the same time, the US is also changing its tariff policy. Donald Trump announced a 10% reduction in duties on Chinese goods, bringing the total level of US tariffs to 47%. This is seen as a step toward easing trade pressure.
Context: tariffs as a tool of influence
The US President has repeatedly stated that tariffs are an alternative to wars, as they allow achieving political goals without armed conflicts.
He also confirmed that the 50% tariffs on imports from India will remain in effect as long as New Delhi continues to buy Russian oil.
Thus, the current easing between the US and China may not be so much a rejection of the trade confrontation as an attempt to restart negotiations and establish new rules for the interaction of the two global economies.
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