Trump’s new trade agreement is ‘colossal deal’ for ag

With the upcoming August 1 deadline approaching for new tariffs, the Trump administration has announced a wave of new trade agreements with key countries. These deals are expected to help American farmers, ranchers, and manufacturers by opening up international markets and avoiding high tariffs.

According to a news release by the administration, the U.S. has reached trade agreements with the United Kingdom, Vietnam, Indonesia, Japan, and the European Union. Talks are also ongoing with other countries, like India and South Korea.

“This colossal deal will enable U.S. farmers, ranchers, fishermen, and manufacturers to increase U.S. exports, expand business opportunities, and help reduce the goods trade deficit with the European Union,” the White House writes. 

Without these deals, American exports could face tariffs as high as 50 percent, which farm economy experts warn could hurt farmers and lead to retaliatory actions from other countries. There is also a temporary pause on tariffs with China, but tensions remain and could impact farmers if negotiations fall through after August 9.

Trade is vital for U.S. agriculture. More than 20 percent of what American farmers grow is sold overseas. According to the American Farm, Bureau Federation, every $1 in agricultural exports creates $2 in additional economic activity in the U.S. — supporting jobs, income, and rural economies.

In 2023, U.S. agricultural exports were valued at $175.5 billion. These exports supported an additionally $187 billion in related economic activity, for a total of over $362 billion.

“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.”

Big Deal with the European Union

One of the most important agreements announced is with the European Union. This deal is being described as a major step forward in the trade relationship between the U.S. and Europe. Key parts of the agreement include:

• The EU will buy $750 billion worth of U.S. energy products through 2028.
• The EU will invest $600 billion in the U.S. economy.
• All EU tariffs on American industrial goods will be removed.
• American farmers and manufacturers will gain better access to European markets.
• Both sides agreed to simplify trade rules, reduce barriers, and support digital trade.
• The deal also keeps high tariffs on steel, aluminum, and copper at 50%, but other sectors will benefit from improved trade terms.

The trade agreements are part of a broader strategy to make the U.S. economy stronger and more secure. The deals are expected to help U.S. businesses of all sizes, encourage reshoring of production, and improve supply chains.

Commerce Secretary Howard Lutnick confirmed that the new tariffs will take effect August 1 and letters have been sent to over two dozen countries explaining the new rules.

The Trump administration says these trade deals are part of a long-term plan to fix unfair trade practices and reduce the trade deficit. They believe the new agreements will help farmers, ranchers, energy producers, and manufacturers reach more customers and grow their businesses.

“No extensions, no more grace periods. Aug. 1, the tariffs are set,” Lutnick said in an interview on Fox News Sunday.