Stacking up US agriculture trade

Food. It has unfortunately been used as a pawn in past and present trade disputes given its essentiality to human life.

- Karen Braun

US President Donald Trump earlier this month suggested that American farmers are hurt by agricultural imports and that tariffs could help them sell more product domestically.

It is true that the United States is increasingly importing farm goods. Those imports have been outpacing exports for the last decade, and by a widening degree.

Countries typically import products when domestic demand exceeds domestic production, or if domestic production is non-existent. But what the United States exports differs widely from what it imports, and it is important to examine those trends to understand where opportunities or threats may lie for US producers.

BIG PICTURE

The United States in 2024 imported a record US$263 billion in agricultural and related products. The export side was valued at $191 billion, down from 2022’s record $213 billion. This import-export gap was an all-time high.

However, inflation-adjusted trade figures reveal a potential sore spot for US producers as exports have stagnated while imports are up. Increasing global competition and shifting trade policies could be among the contributing factors.