ADM is phasing out its domestic trading operations in China and reducing staff in its largest business segment as part of a broader global cost-cutting strategy, according to a report by Reuters.

The move comes amid rising trade tensions between Washington and Beijing, creating new challenges for ADM, which depends heavily on trade between the U.S.—the world’s top agricultural exporter—and China, the leading importer.

The company confirmed that the phase-out of domestic trading through its Toepfer Shanghai subsidiary is expected to be completed by the end of September. Other operations in Shanghai will remain unaffected. ADM did not disclose the number of employees impacted.

“All colleagues whose roles may be affected as part of this transition will be offered the necessary support,” said Dan Lisser, a spokesperson for ADM. “All other operations in the Shanghai office will continue as normal. ADM remains deeply committed to China, serving our customers and partners across the value chain and ensuring a steady flow of essential agricultural commodities, food, and feed products.”

Following its lowest fourth-quarter adjusted profit in six years, the Chicago-based agribusiness giant announced in February that it plans to lay off 600 to 700 employees in 2025. The company aims to reduce costs by $500 million to $700 million over the next three to five years, including $200 million to $300 million in 2025.