News

USTR breaks down Trump ag trade policy efforts for Ag Outlook Forum

U.S. ag officials say the Trump administration is taking steps to address the agriculture deficit.

Julie Callahan, U.S. Trade Representative, told attendees of the USDA Ag Outlook Forum the strategy is tackling both imports and exports.

“I can’t emphasize enough how unprecedented our work is at USTR, and our trading partners are understanding, coming to the table and coming through with considerable commitments under these agreements on reciprocal trade,” she says.

Callahan says geographical non-tariff barriers are finally being removed.

“We were trying to tackle this one at a time,” she explains. “With the reciprocal tariffs and the approach of President Trump, we are tackling this across the board. Every trading partner, we want them to commit to allowing our dairy producers to have full market access.”

Under Secretary for Trade and Foreign Agricultural Affairs Luke Lindberg says a decline in imports is helping to right-size the deficit.

“We’re trying to make sure our domestic producers have the protections in place they need to be successful domestically, but then we’re also ramping up the export side,” he explains. “And together, that’s the calculus that’s going to change the game for the long haul.”

The USDA says new tariffs and moderating exchange rates are expected to slow the growth of import volumes and narrow the ag deficit in 2026.

Fiscal year 2025 ended with the largest ag trade deficit on record, nearly $50 billion. Projections for 2026 call for a deficit of nearly $37 billion, the second largest on record, if realized