U.S. Trade Representative Jamieson Greer has years of trade experience under his belt. He says the goal is to make trade fair again and blames tariff and non-tariff barriers.
“We only charge a 2.5 percent tariff on ethanol, but Brazil charges us an 18 percent tariff. The result: we have a large trade deficit in ethanol with Brazil. Our average tariff on agricultural goods is five percent, but India’s average tariff is 39 percent. Last year, I think we imported about three billion dollars’ worth of Australian beef, and we exported zero dollars of American beef to Australia.”
Ag Secretary Brooke Rollins has said the ag trade deficit will soar to nearly $50 billion this year.
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One trader said the products entering the U.S. are primarily grind and trim, noting that the volume and type of beef, on its own, should not cause a major disruption. However, he says fund traders are reacting heavily to headlines rather than market realities.
