U.S.-China Deal Includes Soybean Purchase Commitments

On Oct. 30 in South Korea, the United States and China announced a new trade framework that averts imminent tariff increases and suspends punitive port fees for at least a year while the U.S. agreed to lower its cumulative tariff rate on Chinese goods to about 47% in exchange for concessions including refined rare-earth access and measures on fentanyl. As a central agricultural element, China pledged to begin buying U.S. soybeans immediately; state-owned COFCO made an initial purchase of roughly 180,000 metric tons and U.S. officials cited commitments of about 12 million metric tons this season and roughly 25 million metric tons annually for the next three years. Chinese officials said they will adjust countermeasures and both sides agreed to extend certain tariff-exclusion measures, but many specifics and implementation timelines are still being worked out. The announcements triggered volatile moves in soybean futures and cash markets as traders weighed renewed Chinese demand against uncertainty over volumes and durability of the pact. Leaders also discussed related trade and technology issues—such as rare-earths, chip export talks and postponing a Section 301 probe—indicating the pact is part of broader, ongoing negotiations.