TRADE UPDATE

Food & Agriculture
May 13, 2025

By Kristy Goodfellow, Vice President of Trade and Industry Affairs

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HIGHLIGHTS

  • Tariffs and Bilateral Negotiations:
    • President Donald Trump and U.K. Prime Minister Keir Starmer announced the U.S. and U.K. Economic Prosperity Deal (EPD), which includes new market access for beef and ethanol.
    • The United States reduced tariffs on imports from China to 30% and China reduced tariffs on imports from the United States to 10% following high-level bilateral meetings over the weekend.
    • Europe began public consultations on a list of U.S. products for tariff retaliation in response to U.S. reciprocal tariffs. The list included many agricultural products.
  • US-Mexico:
    • Agriculture Secretary Brooke Rollins and Mexico Secretary Julio Berdegué met and discussed eradicating New World Screw Worm, upholding the 1944 Water Treaty, and trade.
    • Secretary Rollins announced the United States would suspend imports of live cattle, horses, and bison into the United States after the disease was detected in Oaxaca and Veracruz.
  • Federal Budget: The White House Office of Management and Budget released the President’s Fiscal Year 2026 Skinny Budget, which proposes a $240 million reduction in the McGovern-Dole Food for Education Program, noting “only a small portion of the program’s funding goes toward purchasing U.S. commodities.”
  • World Trade Organization: WTO members met in Geneva for an in-person retreat on sustainable agriculture from May 5-6, with no significant outcomes reported.

“With the world’s population expected to exceed 10 billion by 2050, the demand for food and resources is increasing exponentially. The intersection of trade and sustainable agriculture has never been more essential.”

—WTO General Council Chair Ambassador Saqer Abdullah Almoqbel of Saudi Arabia during the WTO Sustainable Agriculture retreat

Tariffs and Bilateral Negotiations

US-UK AGREEMENT ANNOUNCED, ROLLINS PREPARES FOR UK VISIT

  • President Donald Trump and United Kingdom Prime Minister Keir Starmer announced the U.S.-U.K. Economic Prosperity Deal (EPD) on May 8.
  • The agreement includes general terms that will be the basis for negotiations.
  • In addition to committing to the reduction of tariffs in “sectors of importance” to both countries, the agreement includes new market access commitments for beef from both the U.K. and the United States, and reductions of tariffs for U.S. ethanol by the U.K.
  • The framework notes a plan to “work constructively in an effort to enhance agricultural market access,” but also affirms imported food and agricultural goods must comply with the importing country’s sanitary and phytosanitary standards and other mutually agreed standards.
  • The agreement does not appear to have addressed the U.K. food standards that prevent imports of hormone-treated meat. The U.S. Meat Export Federation highlights this barrier as a “priority market access issue” in its 2025 National Trade Estimate submissions.   
  • Agriculture Secretary Brooke Rollins is leading a trade delegation to the U.K. from May 12-14, where she will meet with senior U.K. government officials, visit facilities importing U.S. agricultural products, and hear from U.S. cooperators and U.K. importers on how the Trump Administration can best position U.S. agricultural products.  
  • The United States exported $3.9 billion in agricultural and related products to the U.K. in 2024, including over $1.6 billion in forest products and $535 million in non-beverage ethanol.
  • The United States imported over $3.2 billion in U.K. agricultural and related products in 2024, including $1.8 billion in distilled spirits.

US-CHINA

  • The United States and China agreed to reduce import tariffs significantly, following bilateral meetings in Switzerland over the weekend.
  • The United States agreed to lower tariffs on Chinese goods to 30%, a significant reduction from the previous 145% rate.
  • China agreed to lower tariffs on U.S. imports to 10%, down from the 125% duty added in response to U.S. reciprocal tariffs announced on “Liberation Day.”
  • As described in a White House press statement, the parties agreed to suspend tariffs for an initial period of 90 days and “establish a mechanism to continue discussions about economic and trade relations.”

EU COUNTERMEASURES PROPOSED

  • The European Commission began public consultations on a list of U.S. imports that could become subject to EU countermeasures in response to U.S. reciprocal tariffs.
  • The list includes many agricultural products, including processed foods, eggs, nuts, cocoa products, fresh vegetables and fruits, animal parts, oils and grains, and related products.
  • The EU has also indicated it would request WTO dispute settlement consultations regarding these tariffs.

US-Mexico

BILATERAL AGRICULTURE MEETING

  • Agriculture Secretary Brooke Rollins hosted Julio Berdegué, her counterpart in Mexico, for a May 6 meeting at USDA’s Washington headquarters.
  • According to Rollins, the leaders discussed eradicating New World Screw Worm, upholding the 1944 Water Treaty, and joint U.S.-Mexico trade.
  • Berdegué also met with U.S. food and agriculture industry leaders and some members of Congress during his visit.
Photo via USDA Flickr
Photo via Julio Berdegué on X

NEW WORLD SCREW WORM

  • Rollins announced on Sunday that the United States would suspend imports of live cattle, horses, and bison into the United States after it was detected in Oaxaca and Veracruz, states just east of Mexico City.
  • In 2024, the United States imported more than $1.3 billion in live animals from Mexico, the vast majority of which was live cattle.

Federal Budget

TRUMP SKINNY BUDGET

  • The White House Office of Management and Budget released the President’s Fiscal Year 2026 Skinny Budget on May 2.
  • The budget proposes a $240 million reduction in the McGovern-Dole Food for Education Program, noting “only a small portion of the program’s funding goes toward purchasing U.S. commodities.”
  • During Rollins’ Senate Appropriations hearing, she said “these programs have a worthy mission and intentions, but ultimately, the question is whether they are serving the taxpayer’s dollars.”
  • The budget proposes an increase of $596 million in shipbuilding and port infrastructure.

World Trade Organization

SUSTAINABLE AGRICULTURE RETREAT

  • WTO members met in Geneva for an in-person retreat on sustainable agriculture from May 5-6.
  • While no significant outcomes or next steps were announced, the event was a notable opportunity for experts from international and regional organizations to share insights on the foundational elements of sustainable agriculture.
Photo via WTO