After reaching a new round of trade agreement between the United States and China, on Wednesday, the Chinese official announced a reduction in tariff rates on American goods. However, agricultural products like U.S. soybeans still face a 13% tariff. In addition, China temporarily suspended measures against 22 U.S. companies listed in the unreliable entity list for a year and suspended export controls on 31 U.S. entities for a year.
The previous meeting between Trump and Xi had analysts believing that China had made significant commitments. The biggest concession being that Xi Jinping, the Chinese leader, did not raise the Taiwan issue, indicating a lack of confidence and strength.
The Chinese State Council Customs Tariff Commission announced on Wednesday (November 5) that China will temporarily suspend the imposition of a 24% tariff rate on U.S. goods within a year, retaining a 10% rate. The new tariff rates will take effect from 1:01 pm on November 10.
The commission also stated that China will suspend the highest 15% tariff on U.S. agricultural products. This tariff adjustment still leaves U.S. soybeans facing a 13% tariff, including the existing 3% basic tariff.
However, according to Reuters, a trader from an international trading company said: “Despite the decrease in tariffs, Chinese buyers still have to pay a 13% tariff when purchasing U.S. soybeans. Compared to Brazilian soybeans, this cost still makes U.S. soybeans too expensive for commercial buyers.” “We do not expect this change to encourage China to increase demand for U.S. soybeans.”
According to the trade agreement between the U.S. and China released by the White House, China is required to purchase at least 12 million tons of U.S. soybeans in the last two months of 2025, and a minimum of 25 million tons annually in 2026, 2027, and 2028. Additionally, China will resume purchasing U.S. sorghum and hardwood logs.
Under the first phase trade agreement reached between China and the U.S. at the beginning of 2020, China committed to increasing the import value of U.S. goods and services by $200 billion by December 31, 2021. However, data from the U.S. Department of Commerce shows that as of December 2021, China had only fulfilled 57% of the procurement target, falling short of China’s pre-trade war levels of purchases from the U.S.
Farm Policy News reported on Wednesday that Allen Featherstone from Kansas State University warned that the lack of weekly export reports from the U.S. Department of Agriculture forces private analysts to rely on commercial shipping data and trade telecommunication confirmations to track shipping conditions. These unofficial estimates often vary greatly, adding uncertainty to market reactions.
In addition, the Chinese Ministry of Commerce announced on Wednesday that measures against 22 U.S. companies listed on the unreliable entity list will be suspended for one year starting on November 10. Export controls on 31 U.S. entities will also be temporarily suspended for a year.
According to the announcement from the Chinese Ministry of Commerce, on March 4 this year, 11 U.S. companies were listed on the unreliable entity list, followed by another 11 companies on April 4. Among them, 21 were linked to Taiwan arms sales or military technology cooperation. Foreign entities listed on the unreliable list are restricted or prohibited from investing in China and engaging in related import and export activities.
Last week, U.S. President Trump and Chinese Communist Party leader Xi Jinping reached a new trade agreement. The White House released a list of agreements last Saturday, stating that Beijing had made many commitments in the agreement. China will suspend all retaliatory tariffs announced since March 4, 2025, as well as suspend or cancel all retaliatory non-tariff countermeasures, including listing certain U.S. companies on its entity list and unreliable entities.
Regarding the recent U.S.-China trade ceasefire, Chinese expert Henghe believes that the biggest concession China made was not raising the Taiwan issue as a bargaining chip for rare earths or soybeans during the Trump-Xi meeting.
Since the 1990s, the Taiwan issue has always been an expected and unavoidable topic at every U.S.-China summit, with Chinese leaders consistently bringing up the matter.
However, after the Trump-Xi meeting, Trump mentioned in an interview on the program “60 Minutes” that Xi Jinping did not bring up the Taiwan issue during the meeting because the Chinese leader and his advisors “understand” the “consequences” of taking military action against Taiwan.
Prior to the Trump-Xi meeting, when asked by media about the pressure he expected from Xi Jinping on the Taiwan issue, Trump responded on Air Force One, “I don’t know if we’ll be talking about Taiwan. I’m not sure. He may want to ask about it, but there’s not much to ask. ‘Taiwan is Taiwan.'”
Author Wang Hao wrote on his Facebook page that Trump’s statement “Taiwan is Taiwan” shook Beijing and refocused the world on the Taiwan Strait. This is more than a slogan, it’s a strategic red line for the Indo-Pacific new order!
Why did China make so many concessions to the U.S.? Henghe said that China’s economy has been below expectations since the pandemic, coupled with the double impact of tariffs, directly challenging the Chinese government’s rule. Additionally, internal turmoil within the Chinese Communist Party is intensifying – “they can only halt external battles temporarily, focus on internal reorganization first.”