China Completes Initial U.S. Soybean Purchase Amid Evolving Trade Policy Concerns

China has fulfilled its initial commitment to purchase 12 million metric tons of soybeans from the United States. This achievement occurs as U.S. trade policy continues to evolve, potentially impacting future commitments.The trade agreement announced in October included a commitment for China to purchase 25 million metric tons of American soybeans annually for the next three years. However, recent statements by President Donald Trump regarding potential tariffs on countries buying from Iran and on European allies over Greenland have introduced uncertainty.Agricultural economist Chad Hart of Iowa State University stated that these new tariffs could undermine the existing trade agreement with China.Beijing had previously paused purchases of U.S. soybeans during a trade dispute with Washington. Purchases resumed following a meeting between President Trump and Chinese leader Xi Jinping in South Korea, where a truce was established.Treasury Secretary Scott Bessent confirmed China's fulfillment of the initial purchasing milestone in an interview from Davos, Switzerland, after meeting with Chinese Vice President He Lifeng. Bessent reported China's ongoing commitment.Preliminary data from the Department of Agriculture last fall had raised questions about China's adherence to the agreement due to slow initial purchasing activity. However, USDA data on January 8 indicated China had purchased over 8 million tons of U.S. soybeans, with subsequent daily reports showing additional orders.In recent years, China has diversified its soybean import sources, increasing purchases from Brazil and Argentina. World Bank data shows Brazilian beans accounted for over 70% of China’s imports last year, while the U.S. share decreased to 21%.