Trade Announcements a Positive Step Forward with China

Smith: U.S. President Donald Trump and Chinese President Xi Jinping met recently to discuss trade and other topics. Faith Parum, an economist for the American Farm Bureau Federation, said China remains a top trading priority, even after disruptions last year.

Parum: For 2025, we saw less sales to China due to some of the trade disruptions, but we have had recent news from the administration on potential trade deals that will help boost U.S. ag product sales. We are seeing ships head towards China, so that is a good sign, but we're waiting for more, obviously, as the details come out from this negotiation.

Smith: During recent talks, China and the U.S. agreed to some additional agricultural purchases on top of commitments made last year.

Parum: The White House has put out a fact sheet kind of detailing some of the agreements they came out to, which is about $17 billion a year of ag products on top of the purchase commitments made in October. So, that deal is still in place, plus on top of that, that additional $17 billion.

Smith: Trade continues to be vital for the success of U.S. agriculture.

Parum: About 20 percent of all ag products are exported, so that means one in five are exported. In 2025, Canada and Mexico are our largest trading partner, with the European Union as our second-largest export market for ag products. As we start to talk about the future of the ag economy, making sure that we continue to diversify market opportunities for farmers will really help get some stable footing.

Smith: Learn more on the Market Intel page at fb.org. Chad Smith, Washington.