China will reimburse tariffs costs for soybeans bought for state reserves

China will reimburse buyers for the cost of the 25 percent tariff on soybean imports from the United States if the cargoes are for state reserves, Bloomberg reported on Monday, citing unidentified sources.

The United States and China slapped tariffs on $34 billion worth of each others' goods starting from July 6 including a range of U.S. farm products.

State reserve buyers will pay the additional tariff before it is later reimbursed by the government, according to Bloomberg citing people familiar with the matter.