AI Brief
- China is willing to purchase US farm goods if both countries agree on reciprocal tariff reductions, according to the commerce ministry.
- The proposed package includes US$17 billion in annual US agricultural imports by China, but the agreement has not been finalised.
- Uncertainty remains over the timeline for the deal, as current imports are at their lowest since 2019, raising concerns for US farmers.
BEIJING: China is open to buying US farm goods, but only on the condition that the two sides reach an agreement on reciprocal tariff cuts, the commerce ministry said on Thursday.
Following a September summit between Presidents Xi Jinping and Donald Trump in Washington, the two sides proposed a US$60 billion package of reciprocal tariff cuts, including roughly US$17 billion worth of US farm goods that China imported in 2024, though the plan has yet to be finalised.
"China hopes the United States will work with China to create favourable conditions for agricultural trade between the two countries through measures such as jointly lowering tariffs, reducing non-tariff barriers and expanding market access," said Huang Ling, a commerce ministry spokesperson, during a regular press briefing.
The White House said in May that Beijing had agreed to buy US$17 billion of US agricultural goods annually from 2026, with this year's target adjusted on a prorated basis.
Those purchases were in addition to a commitment made in October last year to buy US soybeans.
China is on track to meet its soybean purchase target, but bought only US$7.2 billion of other US agricultural products, including meat and corn, between January and September, according to a Reuters analysis.
Uncertainty persists over when the clock starts on the US$17 billion non-soy purchase deal, as the White House has not said whether the timeline began with its May announcement or will begin only once China's proposed tariff cuts are finalised.
Imports of those products were at their lowest level for the period since 2019, at the height of the first US-China trade war.
The slow pace of buying has fuelled doubts over whether imports will rise sharply this year, adding to pressure on US farmers already grappling with high fuel costs.
Traders have told Reuters that lower tariffs would be needed to make large-scale purchases commercially viable.
