Trade Agreements are Good News For U.S. Farmers and Ranchers

Smith: Ahead of the looming August 1 reciprocal tariff implementation deadline, the Trump administration has announced a number of deals with international trading partners. Faith Parum, an economist with the American Farm Bureau Federation, says several of the deals were made with key international markets.

Parum: The administration has announced trade deals with the UK, Vietnam, Indonesia, Japan and the EU, with many other negotiations still in the works.

Smith: It's well known that trade is essential for the health of American agriculture.

Parum: Over 20 percent of what we grow is sold overseas, and every $1 in agricultural exports generates $2 at home. So, that's jobs, incomes, and opportunities for rural communities.

Smith: Experts expect many additional deals to be announced in the coming days, as several critical deadlines are approaching.

Parum: Farmers should watch out for last-minute trade deals with major partners like India and South Korea, and so without agreements, we could see tariffs as high as 50 percent and risk retaliations from other countries. Farmers should also keep an eye on rising tensions with China. These two countries have negotiated a pause on tariffs until August 9, but renewed conflict could hurt farmers.

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