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.
While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
December 03, 2025 01:36 PM
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China’s renewed purchases signal improving sorghum demand at a time when export markets are otherwise uneven. Meanwhile, agriculture groups across the U.S, Canada, and Mexico want to protect close trade relations.
December 03, 2025 11:51 AM
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Despite the need for swift action, many ag lawmakers and industry groups argue that farm aid alone will likely not be sufficient to help farmers without improved trade relations with China.
December 01, 2025 12:21 PM
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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.
November 24, 2025 02:42 PM
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Shaun Haney, host of RealAg Radio, provides the latest insight into the timing, expectations, and broader considerations of the potential aid package, despite increasing exports to China.
November 24, 2025 12:42 PM
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Higher rail tariffs and tighter Canadian supplies will keep oat transportation costs firm into 2026.
November 24, 2025 11:22 AM
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Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.
November 21, 2025 10:30 AM
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Bangladesh recently pledged to purchase 700,000 tons of U.S. wheat and has also become a new buyer of American soybeans.
November 20, 2025 12:53 PM
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Urea and phosphate see the biggest price relief from tariff exemptions, but nitrogen markets remain tight, and spring demand will still dictate pricing momentum.
November 19, 2025 12:31 PM
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