China tariff on US soybeans now 44%

WASHINGTON, DC, US — More than half of US soybean exports now face tariffs of 44%, in the latest chapter of a global trade war that has the United States and China going head to head.

On April 2, the White House announced sweeping new tariffs on more than 50 countries, including a combined 54% levy added for Chinese goods since President Donald Trump took office in January.

Two days later, China responded with a tariff escalation of its own, slapping an additional 34% levy on US goods, on top of 10% to 15% tariffs China added on select products earlier this year, from wheat (15%) to soybeans (10%). That means US soybean exports to China will be tariffed at a combined rate of 44% beginning April 10, according to Chinese officials. The United States’ new tariffs on Chinese goods will begin April 9, the White House said.

“The China tariff news certainly is disappointing but not completely unexpected after US tariff announcements Wednesday,” said Brian Harris, executive director and owner of Global Risk Management. “As China will be using Brazil almost exclusively for the next several months, any rally potential for soybean values will likely have to come from a US weather issue, especially since planted acres will be down substantially.”

In its March 31 Prospective Plantings report, the US Department of Agriculture set US farmers’ 2025 soybean planting intentions at 83.5 million acres, down about 4.1% from acres planted the previous year.

The CME Group May soybean contract had fallen near $9.75 per bu in early trading April 4, down more than 5% since the White House announcement. The November new-crop contract also was down more than 5%.

China is the world’s largest buyer of agricultural products and the top importer of soybeans. Brazil is its leading soybean supplier, having increasingly won market share from No. 2 United States since Trump initiated a tariff exchange with China during his first term. In 2024, more than half of US soybeans by value were shipped to China, according to the Foreign Agricultural Service of the USDA.

Of the top 10 destinations for US soybean exports last year, accounting for $22.6 billion in sales, only Mexico ($2.3 billion) was spared from trade war escalation as part of the White House’s April 2 announcement, putting 90% of those exports in line for possible retaliation. Soybean sales to Mexico for now remain exempt from tariffs under the United States-Mexico-Canada Agreement, which Trump negotiated during his first term.

“We are hoping that from obstacles can come opportunity and that the administration will swiftly work with the affected countries to create new market access opportunities for US soy and other US products in these markets so these higher tariffs can be removed,” said Caleb Ragland, soybean farmer and president of the American Soybean Association, after the White House announcement. “That includes pursuing a Phase 2 Trade Agreement with China.

“Soy farmers still suffer from negative impacts of lost market share, reputational damage and expanded production in competitor countries stemming from China’s trade retaliation in 2018-19.”

China’s massive tariff increase on US goods will hit other agricultural trade as well. Across soybeans, sorghum, dairy, wheat, corn, poultry and meat, more than $15.7 billion in US exports now face tariffs of 44% to 49% beginning April 10.