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U.S. trade deficit expected to grow

An ag economist says the USDA is forecasting that the United States’ already record trade deficit will grow even larger in Fiscal Year 2025.  

Scott Brown is a professor emeritus at the University of Missouri. “USDA is now saying for FY25, so what would have started October 1st of 2024, the trade deficit is $45.5 billion,” he says.  “So the U.S. is a net importer. When we look, we’re talking about becoming bigger net importers.”

In Fiscal Year 2022, the U.S was a net exporter of $2 billion.

Brown says there are a couple of sectors where there have been substantial increases in imports. “We’ve seen things like fruits and vegetables grow,” he says.  “And one that’s been on the radar on and off again, is used cooking oil coming in for renewable fuels. I think those are some of the things that have driven it.”

He tells Brownfield while the trade deficit is increasing overall, the livestock sector tells a different story. “Overall, USDA increased exports of livestock, poultry and dairy products by $700 million,” he says.  “Beef and veal were up $0.4 billion, and pork was up $0.1 billion.”

Fiscal Year 2025 estimates for U.S exports to Mexico are at $29.9 billion, while imports from Mexico are valued at $49.9 billion a 4 percent increase from FY 2024.

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