While tariffs have dominated the headlines recently, ag economists say the trade deficit is not something to ignore.
“Yeah, we do have a trade deficit overall in the U.S. economy, and we also have a trade deficit in agricultural and food products. The deficit of agriculture and food products is a story of very different worlds. On the one hand, we have a big surplus in major commodities like wheat, corn, soybeans, cotton, pork, and many other products, but we have a deficit in things like fruits, vegetables, and many processed products. So, again, those have impacts on different parts of U.S. agriculture, and to try and address that deficit is a high priority of the current administration,” said Pat Westhoff, director of the Food and Agricultural Policy Research Institute at the University of Missouri.
Westhoff says while the tariff situation has calmed, they are still having a role in market action. He says there is no question that China will now look elsewhere for commodities like soybeans.
“With the current tariffs that are put in place by China, over 125 percent, that makes it almost impossible for the U.S. to sell soybeans to China. That market will be dominated even more than it already is by Brazil and a couple of other major players outside of the US. So, then the question becomes whether we were able to pick up enough markets elsewhere in the world to offset the loss of the Chinese market. A lot of people are hoping that the current very high levels of tariffs will not persist, that there be some sort of agreement that will at least bring those tariff levels down if not eliminate them entirely.”
Progress could be on the horizon. Bloomberg reports Chinese officials will come to the table if certain demands are met. So far, more than 100 countries have indicated they are willing to negotiate.
Trade volatility and shifting export destinations increase marketing risk for producers heading into 2026.
January 18, 2026 07:00 AM
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Shaun Haney joined us to discuss Canada’s new trade agreement with China, the potential impact on farmers and exporters, and what it could mean for U.S.–Canada trade relations going forward.
January 16, 2026 01:16 PM
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The proposal signals a renewed push to offset tariff-driven losses, stabilize nutrition programs, and broaden eligibility for farm aid, though its path forward will depend on congressional negotiations.
January 16, 2026 11:58 AM
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House Agriculture Committee Democrats are calling for action on the Farm and Family Relief Act, warning that proposed SNAP cost shifts to states could reduce food assistance for low-income families amid ongoing tariffs and trade disruptions that continue to strain U.S. farmers.
January 15, 2026 12:30 PM
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RealAg Radio host Shaun Haney discusses the latest developments in the Supreme Court, trade tariffs, and the future of the USMCA under President Donald Trump.
January 14, 2026 11:54 AM
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China’s beef policy risk stems from domestic volatility, making export demand inherently unstable. Jake Charleston with Specialty Risk Insurance offers his perspective on cattle markets, risk management, and producer sentiment.
January 13, 2026 02:13 PM
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USDA flash corn sales, Cattle on Feed and Inventory reports, and beef packer antitrust concerns dominate January agricultural market news.
January 13, 2026 01:53 PM
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Strong pork demand and improving beef exports outside China support protein markets despite ongoing trade barriers.
January 13, 2026 06:00 AM
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Traders are keeping a close eye on China’s soybean purchases as markets track export sales, shipments, and progress toward the ‘magical’ 12 million ton target promised last year.
January 12, 2026 11:57 AM
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