China Reportedly Waives Tariffs on 5 MMT to 6 MMT of U.S. Soybeans

Posted on 09/24/2019 3:44 PM

China has issued two batches of waivers allowing several importers to buy around 5 MMT to 6 MMT of U.S. soybeans free from retaliatory tariffs, according to two sources familiar with the matter cited by Reuters. This is meant as a goodwill gesture preceding high-level trade talks next month. Xinhua news agency is also reporting that China’s customs office says it will continue to exclude certain U.S. ag products, including soybeans and pork, from additional tariffs, citing sources with the National Development and Reform Commission and the Ministry of Commerce.

But past experience with this trade war means the market is well aware that the waivers in no way imply China will indeed make large purchases of the U.S. oilseed. And President Donald Trump was sharply critical of China’s trade practices in his address of the United Nations today.

Nevertheless, some privately-owned firms bought at least 10 cargoes of U.S. soybeans on Sept. 12 and Chinese firms reportedly bought more than 20 cargoes of soybeans on Monday. Meanwhile, the U.S. released several lists exempting 400 types of Chinese products from additional tariffs.

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