Trump to reduce tariffs on Chinese imports

China has committed to return orders of US soybean exports to previous levels.

A trade agreement between President Donald Trump and Chinese President Xi Jinping includes a reduction of tariffs on Chinese imports.

The US will cut tariffs by 10% in exchange for China taking “strong action” on chemicals used in the manufacture of fentanyl, according to a report by The Wall Street Journal (WSJ). The 10% cut in tariffs will make tariffs on Chinese imports 47%.

“The move signals a slight de-escalation in the trade conflict and could lower prices on consumer goods imported from China, ranging from electronics and household items to toys for the Christmas season,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “For North Carolina producers who rely on Chinese components, reduced tariff rates may ease input costs and improve profit margins.”

Additionally, China has agreed to ease the export controls on rare earth minerals for one year.

“China also agreed to relax its export controls on processed rare earth minerals for one year, after threatening earlier this month to tighten those restrictions — a move that alarmed US manufacturers that rely on these materials to produce everything from smartphones to military equipment,” concluded Harris.

Furthermore, China has agreed to purchase large amounts of US soybeans. Soybeans are among North Carolina’s top five cash crops, and soybean farmers have been sent into a frenzy since China began cutting back on US imports in April. Soybeans dropped significantly from 72,000 tons the week of April 10 to only 1,800 tons the week of April 24, reported the Wall Street Journal.

Historically, China has been one of the US’s top suppliers of soybeans. China accounted for $12.6 billion, or approximately half of the US’s soybean exports, in 2024.

According to the USDA, approximately 1.61 million acres of soybeans were harvested in North Carolina in 2024. In 2023, approximately 1.63 million acres of soybeans were harvested in North Carolina, and this was down from 1.68 million in 2022, according to a report from the USDA. Soybeans account for about 5.7% of farm cash receipts for North Carolina in 2023, according to another USDA report.

In September, the American Soybean Association sent a letter to the Trump administration calling on the administration to help American soybean farmers.

So far in the current marketing year, which started Sept. 1, China has not placed any orders for US soybeans, Charles Hall, executive director of the North Carolina Soybean Producers Association, told the Carolina Journal in a previous interview. In recent years, China has purchased 30% of the US soybean crop.

Over the next three years, China has committed to returning its purchases of US Soybeans to “regular levels,” said US Treasury Secretary Scott Bessent, according to a report by Axios.

According to a Wall Street Journal report, China placed orders for US soybeans on Thursday.

“Trump to reduce tariffs on Chinese imports” was originally published on www.carolinajournal.com.