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U.S. makes trade deal with Vietnam

President Donald Trump says U.S. and Vietnam have reached a preliminary trade deal and a commodities economist says he’s optimistic the deal will open markets for U.S. ag commodities.

Arlan Suderman with Stone X Group says not many details are known, but price will be a factor in the commodities Vietnam decides to buy.

“It looks like the door has been opened, wide open,” he says. “The markets we’re currently looking for them to participate in is pork, beef, soybeans and corn to feed their livestock and wheat.”

Trump says Vietnam will pay the U.S. a 20 percent tariff on any and all goods sent into our territory and a 40 percent tariff on any transshipping and in return, the U.S. will sell products into Vietnam tariff free.

Earlier this year, Vietnam trade delegations signed Memorandum of Understanding to purchase ag products from Iowa and Ohio.

“When we sign an agreement with a country, they want to know where products are coming from and that’s when they start their investigation of export locations and learn more about products available. That opens up the door for us to tell the story about U.S. agriculture,” says Suderman.

He says the United States is also working on trade deals with the European Union, Canada, Mexico and India, still trying to get trade deals in place before next week’s trade deadline.

“I think we could see trade deals with any or all of them, Japan as well. South Korea maybe a little more challenging, though I know the administration is working on that as well.”

Suderman says the trade news is contributing some to grain market movement.