This year’s ag trade deficit is forecast to ballon past $45 billion. It is a number that puts the trade balance in the red by double digits.
“A trade balance of -$12 billion, which is $8.9 billion less than the -$3 billion during the same time period the previous year,” said Bart Kenner, USDA economist.
Kenner says the main driver of slower exports in the last couple of years has been the strong dollar compared to foreign currencies. U.S. ag exports fell around $4 billion last year. Exports to Asia are expected to fall several billion dollars this year, and that was calculated before tariff discussions.
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With port fees now lifted, economists believe that could help ease tensions. However, American Farm Bureau Federation (AFBF) economist Faith Parum said trade deals with smaller Asian countries are helping stabilize the ag economy.
