Is a negative US agricultural trade balance a cause for concern?

The rising agricultural trade deficit is a relatively recent phenomenon, but it should not be a cause for alarm. Most exported goods face little competition from imports that help consumers meet their year-round demands for fresh fruits, vegetables, and other food products. Lower agricultural expor...

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Autor principal: Glauber, Joseph W.
Formato: Informe técnico
Lenguaje:Inglés
Publicado: American Enterprise Institute 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/175689
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author Glauber, Joseph W.
author_browse Glauber, Joseph W.
author_facet Glauber, Joseph W.
author_sort Glauber, Joseph W.
collection Repository of Agricultural Research Outputs (CGSpace)
description The rising agricultural trade deficit is a relatively recent phenomenon, but it should not be a cause for alarm. Most exported goods face little competition from imports that help consumers meet their year-round demands for fresh fruits, vegetables, and other food products. Lower agricultural export values in recent years reflect the importance of bulk commodities like soybeans, corn, and wheat. Those commodities’ prices have significantly declined since reaching recent highs in 2022. Imported agricultural goods tend to be consumer-oriented products like fresh fruits and vegetables, which have processing and distribution costs that have increased with global inflation. In contrast to prices for bulk commodities, prices for consumer-oriented products have increased significantly since 2022. The Trump administration’s new tariffs may reduce imports and will certainly impose costs on US consumers, but their impact on the agricultural trade deficit is less clear as US agricultural exports could be adversely affected as well, particularly if they face counter-retaliatory tariffs.
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spelling CGSpace1756892025-07-18T15:41:38Z Is a negative US agricultural trade balance a cause for concern? Glauber, Joseph W. agricultural trade exports imports trade barriers tariffs commodities The rising agricultural trade deficit is a relatively recent phenomenon, but it should not be a cause for alarm. Most exported goods face little competition from imports that help consumers meet their year-round demands for fresh fruits, vegetables, and other food products. Lower agricultural export values in recent years reflect the importance of bulk commodities like soybeans, corn, and wheat. Those commodities’ prices have significantly declined since reaching recent highs in 2022. Imported agricultural goods tend to be consumer-oriented products like fresh fruits and vegetables, which have processing and distribution costs that have increased with global inflation. In contrast to prices for bulk commodities, prices for consumer-oriented products have increased significantly since 2022. The Trump administration’s new tariffs may reduce imports and will certainly impose costs on US consumers, but their impact on the agricultural trade deficit is less clear as US agricultural exports could be adversely affected as well, particularly if they face counter-retaliatory tariffs. 2025-07-15 2025-07-18T15:41:37Z 2025-07-18T15:41:37Z Report https://hdl.handle.net/10568/175689 en Open Access American Enterprise Institute Glauber, Joseph W. 2025. Is a negative US agricultural trade balance a cause for concern? AEI Report. Washington, DC: American Enterprise Institute. https://www.aei.org/research-products/report/is-a-negative-us-agricultural-trade-balance-a-cause-for-concern/
spellingShingle agricultural trade
exports
imports
trade barriers
tariffs
commodities
Glauber, Joseph W.
Is a negative US agricultural trade balance a cause for concern?
title Is a negative US agricultural trade balance a cause for concern?
title_full Is a negative US agricultural trade balance a cause for concern?
title_fullStr Is a negative US agricultural trade balance a cause for concern?
title_full_unstemmed Is a negative US agricultural trade balance a cause for concern?
title_short Is a negative US agricultural trade balance a cause for concern?
title_sort is a negative us agricultural trade balance a cause for concern
topic agricultural trade
exports
imports
trade barriers
tariffs
commodities
url https://hdl.handle.net/10568/175689
work_keys_str_mv AT glauberjosephw isanegativeusagriculturaltradebalanceacauseforconcern