President Trump hosted President XI in Washington, DC., but the news for agriculture was only a 60-day extension of the tariff rollback.
This week's summit between President Trump and President Xi had plenty of pomp, but had given agriculture only a 60-day extension of the tariff rollbacks. Analysts believe that China is using global grain producers to keep their importing options open.
Transcript
This week, the White House presented China’s paramount leader with a lavish welcome to Washington D.C., for his first visit to the nation’s capital since 2015.
Leading the discussion were tariffs placed on goods by President Trump in 2025. Even without the latest duties, those tariffs are still straining supply chains around the globe.
A two-month extension to the pause on the current reciprocal tariffs was announced, pushing the end of the truce to January 10th of 2027. While grain exports should continue, the 2026 export year is still trending lower than the 2024 export year, just before the Trump Administration sparked the latest tariff war.
American farmers may benefit from a longer delay in any spikes in tariffs.
Gbenga Ajilore, Center on Budget and Policy Priorities “We we you'd like to see something more long term and have a long term ho long term h horizon. I mean especially for our farmers who plan, they don't plan week to week. They plan season to season, year to year, to think about what's gonna be in the future. So you'd want to see us do something similar to that. But it's one of those things where, you know, it's not what you say, it's what you do. And so what we've seen this administration do over the last year and a half is, you know, there's not a lot of hope for that.”
The truce has been welcomed by several commodity groups including the American Soybean Association.
Over the first six months of this year, 11 mmt of raw commodity crops have been exported to China including wheat, corn and soybeans. The amount is a big rebound over the 7 mmt exported in 2025, when the tariff war began. Purchases of all crops by China have fallen well below the 48 mmt purchased in 2021.
Gbenga Ajilore, Center on Budget and Policy Priorities “For China, I think one of the biggest leverages that they have is that we are not the only game in town. And so we go back to the first Trump administration when we had that trade war, they started dealing with Brazil. And then last year they had a new partner in Argentina. So, you know, China can say, Well, we wanna purchase from you but we have other options in Brazil and Argentina and so I think that's the leverage that they have.”
The President’s relationship with Xi may have little effect on diesel prices, which reached a new high this week. With rural America working on harvest, fuel prices are cutting into already expected slim margins for the crop.
For Market to Market, I’m Peter Tubbs.
Watch More
China trade talks, harvest delays, corn demand and Wisconsin dairies plan for the next generation.
Passing a dairy farm on to the next generation can be hard, but two operations in Wisconsin are making it work for each of their own styles.
The week brings no news from China. Wheat continues to struggle because of the Black Sea. Rainfall distribution hammers beans. All this and more in our Market Analysis with Arlan Suderman.
Rain distribution affects beans and uncertain times make end users reluctant to stick necks out.
The recent return to higher commodity prices has helped keep the farmland and cash rent market strong.
The bill advances 12–11 as lawmakers remain divided over SNAP provisions.