DeLisi: China’s Trade Commitments Signal New Era for Crop Protection Markets
3 November 2025 During a recent episode of AgriBusiness Global Report, Fanwood Chemical Inc. President Jim DeLisi provided a detailed update on the latest trade developments following President Trump’s recent visit to Southeast Asia and China — outlining potential ripple effects across the global crop protection industry.
According to DeLisi, the visit produced several notable agreements that could influence agricultural markets and global trade flows in the months ahead. “President Trump was in Asia last week — Japan, Malaysia, and South Korea. In South Korea, he met with Chairman Xi of China, and they reached a few agreements,” he said.
One of the most significant outcomes, DeLisi explained, was China’s decision to postpone any major moves on rare earth elements and related materials for a year. “That was really important,” he said, “because it put the whole world in jeopardy of not having access to those magnets and products. So that was an important accomplishment during the meeting.”
China also committed to purchasing a large quantity of soybeans from the United States, not only for the current year but for 2025 through 2028. DeLisi noted that this commitment could ease pressure on U.S. soybean farmers after years of uncertainty. “It was expected that China would eventually need to buy U.S. soybeans because there literally aren’t enough soybeans in the world for them to function without some material from the United States. But it’s great to have that confirmation.”
Another notable development involved fentanyl and its precursors. China agreed to take stronger measures to curb exports of these substances, which have contributed to a public health crisis in the United States. “That was important,” DeLisi said. “In return, President Trump has agreed to reduce the tariff on fentanyl from 20% to 10%.”
These shifts, however, could place India in a more challenging position. “This reduction in the Chinese tariff does put India in an interesting position, because now there are a whole series of products where the net tariff on China is lower than India,” DeLisi said. “For instance, on formulated aromatic chemicals, the China tariff will now be 51.5% while it’s 56.5% from India. On non-aromatics, it’s 50% for China and 55% for India.”
DeLisi cautioned that these changes may significantly alter competitive dynamics within the crop protection supply chain, urging industry players to re-evaluate their sourcing and pricing strategies. “Listeners are urged to reevaluate where they stand on the total tariff impact,” he said.
Beyond the immediate tariff adjustments, new trade agreements were signed with Malaysia and Cambodia, and framework agreements were established with Thailand and Vietnam. However, DeLisi emphasized that their implementation may face delays due to the ongoing U.S. government shutdown. “It will now be up to the Secretary of Commerce to determine how to handle annexes two and three,” he explained. “But that will be quite a chore because, with the government still shut down, there aren’t many people available in the International Trade Administration to implement these agreements.”
Another outcome from the U.S.–China negotiations was an extension of the “COVID exception list,” which grants certain products temporary tariff exemptions. The list was set to expire later this month but has been extended through November 10, 2026. “One agrochemical product on that list that impacts the industry is NBT, which is used as a fertilizer enhancement,” DeLisi said. “For all intents and purposes, all the NBT used in the United States is Chinese. It’s been exempted from tariffs of 12% to 25% and will remain exempt for another year.”
Looking ahead, DeLisi highlighted a key moment in the ongoing trade debate: the U.S. Supreme Court’s review of the IIP tariff case, scheduled for this week. “This is a huge week, and everybody needs to watch the news on Wednesday night,” he said. “The IIP tariff case before the Supreme Court will have oral arguments, and hopefully we’ll get some idea of how the Court is leaning.”
The outcome could shape the future of presidential trade authority. “It’s important to remember that the Section 301 and Section 232 tariffs — which include copper, aluminum, and steel — are not directly impacted by what’s happening on Wednesday,” DeLisi clarified. “But if it looks like the Supreme Court is going to go against the administration, Mr. Trump could still use his 301 authority to do what he wants to do.”
Despite ongoing uncertainty, DeLisi expressed confidence that the administration’s approach would hold. “We’ll know on Wednesday night,” he said, “but it looks like they’re confident they will win.”
As the global ag chem industry braces for potential market shifts, DeLisi’s analysis underscores a simple truth: trade policy remains one of the most powerful forces shaping crop protection and agricultural supply chains today.
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