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U.S. makes trade deals as new tariffs set to take effect

A series of new trade deals between the United States and countries around the world will directly benefit America’s farmers and ranchers, according to analysis by American Farm Bureau economists, who analyzed the importance of trade for rural America in the July 28 installment of  Market Intel.

“Trade is essential to the success of America’s farmers and ranchers,” said AFBF President Zippy Duvall. “Strong and enduring agreements help connect U.S. farmers to global markets and Farm Bureau has long been a strong advocate for leveling the playing field for American-grown products. We appreciate that the administration is making agriculture a priority in ongoing trade discussions. Opening new markets and working to strengthen existing partnerships will help ensure U.S. farmers can continue leading the world in producing safe, sustainable and affordable food for America’s families and families around the world.”

The Trump administration threatened reciprocal tariffs on several countries if they did not negotiate new trade terms by Aug. 1. Recent trade deals announced ahead of the administration’s deadline include those with the European Union, Japan, the Philippines, Indonesia, Vietnam and the United Kingdom.

“Agricultural trade plays a vital role in the American economy. It supports U.S. farmers while driving economic growth and job creation across the country,” the Market Intel states. “With more than 20% of U.S. agricultural production sold abroad, exports are a key part of this picture. On average, every dollar of agricultural exports generates $2.06 in additional economic activity within the United States.”

In 2023, U.S. agricultural exports were valued at $175.5 billion. Exports supported an additional $187 billion in related activity, for a total of more than $362 billion in economic activity.

To read the full Market Intel, click here.

Meanwhile, the White House announced on July 31 a set of tariffs on imports from 64 nations ranging from a base of 10% to as high as 41%. In establishing these tariffs, President Trump noted that these duties apply to nations that have reached or are on the verge of  “concluding meaningful trade and security agreements with the United States.”

The July 31 White House announcement about the ongoing tariffs can be found here.

On Aug. 6, the White House announced that it would be imposing an additional 25% tariff on India, in addition to the 25% rate set to go into effect Aug. 7, because India is directly or indirectly buying Russian oil. The new tariffs related to the Russian oil purchases are set to go into effect in 21 days.

 

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