Trump-Xi Summit to Focus on Agricultural Deals and Energy Tariffs
The upcoming Trump-Xi summit in Washington is expected to focus on trade agreements between the US and China, particularly in agriculture, energy, and rare earths. Agricultural goods, led by soybeans, are one of the biggest US exports to China, reaching $29 billion in 2024. The US has been pushing for Beijing to meet its commitments to purchase 25 million metric tons of US soybeans annually through 2028, with an additional $17 billion in other agricultural product purchases. Analysts expect some waivers after US Trade Representative Jamieson Greer said there could be announcements to incentivize US agricultural sales to China.
The trade war has also affected energy imports between the two countries. China has been a modest buyer of US oil and gas, but imports ground to a halt last year after Beijing imposed tariffs of 10% to 15%. Washington has been pushing to change that since Trump's visit to Beijing in May, with a possible $30 billion package of reciprocal tariff cuts. However, this would not immediately translate to a big new windfall for US LNG producers.
The issue of rare earths is also on the agenda, as China's control over production and decision to limit exports brought Trump to the negotiating table this year. While more material is now flowing from China, the issue is not fully resolved, with US firms in sensitive industries struggling for access.