TRADE UPDATE

Food & Agriculture
July 15, 2025

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Ameya Khanapurkar, Project and Policy Coordinator, Ellen McDonough, CRA Trade Intern, and Aliza Hart, CRA Communications Intern

HIGHLIGHTS

• Tariffs and Bilateral Negotiations:
  • The deadline for implementing reciprocal tariffs was moved from July 9 to Aug. 1 and many countries were issued new tariff rates.
  • President Donald Trump increased the tariff threat on Canada from 25% to 35% and on Brazil from 10% to 40%.
  • Over the weekend, Trump also threatened 30% tariffs on the EU and Mexico.
• U.S.-Mexico:
  • On July 14, the U.S. withdrew from the 2019 Tomato Suspension Agreement, which means U.S. imports of tomatoes from Mexico now face antidumping duties.
  • USDA has closed five ports of entry along the U.S.-Mexico border to livestock, reversing a previous decision following a July 8 detection of New World Screwworm 370 miles south of the border.
• USDA:
  • Agriculture Secretary Brooke Rollins was the keynote speaker at the U.S. Agricultural Export Development Council (USAEDC) 2025 Global Attaché Policy Forum & Consultations. The groups gathered for the event utilize U.S. government export promotion funding, which has been increased significantly in the One Big Beautiful Bill Act.
  • The U.S. Department of Agriculture released its National Farm Security Action Plan, which is a comprehensive initiative to protect American agriculture and food supply chains from foreign threats through restrictions on foreign ownership of land and increased transparency.
  • USDA announced more than $200 million for the Food for Progress Program awards. Meanwhile, the Senate Appropriations Committee included $1 million in funding to study the potential transfer of Food for Peace administration from the State Department (formerly the U.S. Agency for International Development) to USDA.
• Trade Data: An analysis from North Dakota State University’s Center for Agriculture Policy and Trade Studies found that Chinese agricultural imports are down 18%.

“We feed the world. We lead the world. And we’ll never let foreign adversaries control our land, our labs, or our livelihoods.”

—Agriculture Secretary Brooke Rollins

Tariffs and Bilateral Negotiations

ADMINISTRATION SENDS TARIFF LETTERS

• On July 7 and 9, President Donald Trump issued 22 letters announcing new tariff rates to combat the U.S. trade deficit and non-tariff barriers implemented by U.S. trading partners.
• The letters, which have been shared in Truth Social posts, affect many South Asian countries and include new tariff rates, which have been adjusted up or down depending on engagement since the April 2 reciprocal tariff announcement.
• The administration’s 90-day pause on reciprocal tariffs was previously set to expire on July 9, but Trump on Monday signed an executive order extending the deadline for implementation to August 1.  
• A press statement from the White House says that to avoid the tariffs on foreign products, companies must build and operate within the U.S. This initiative aligns with the administration’s goals to increase manufacturing jobs for Americans.
• Notably, Trump has threatened a 50% import tax on Brazilian products due to the country’s investigations and treatment of the former president, Jair Bolsonaro. In response, Brazil noted it would reciprocate with its own tariffs if the threat actualized. Brazil is America’s second-largest trading partner.
• Trump separately threatened a 35% tariff on Canadian imports, citing previous Canadian retaliatory action as well as fentanyl flows.
• Over the weekend, Trump also threatened 30% tariffs on the EU and Mexico, citing persistent trade deficits with the former and narcotic trafficking for the latter.

U.S.-Mexico

U.S. TERMINATES U.S.-MEXICO TOMATO SUSPENSION AGREEMENT, INCREASING TARIFFS

• Starting July 14, U.S. imports of tomatoes from Mexico will be charged antidumping duties of 3.91-30.48%, following the U.S. withdrawal from the 2019 Agreement Suspending the Antidumping Duty Investigation on Fresh Tomatoes from Mexico. 
• On Friday, the U.S. Chamber of Commerce sent a letter signed by over 30 organizations to Secretary of Commerce Howard Lutnick requesting the Trump administration leave the 2019 suspension agreement in place while a new agreement is negotiated.
• The letter urges the administration to consider economic and job losses as well as higher consumer prices.
• Since 2019, antidumping duties have been replaced with requirements outlined in the suspension agreement and administered by USDA.

NEW WORLD SCREWWORM RESUMES SPREAD

• On July 8, a new case of New World Screwworm was detected 370 miles south of the U.S.-Mexico border.
• Following the detection, USDA announced it would again shut down U.S. southern border ports to livestock, reversing its earlier reopening strategy for livestock exports, which was set to begin on July 7.
• The USDA released an eradication strategy in June which outlined containment techniques and cooperation with Mexico.

USDA

EXPORT PROMOTION

• Agriculture Secretary Brooke Rollins was the keynote speaker at the U.S. Agricultural Export Development Council (USAEDC) 2025 Global Attaché Policy Forum & Consultations.
• The groups gathered for the event utilized U.S. government export promotion funding, which has been increased significantly in the One Big Beautiful Bill Act. 
• The bill includes a new Supplemental Agricultural Trade Promotion Program with an annual funding level of $285 million beginning in Fiscal Year 2027, which is in addition to existing funding for the Market Access Program (MAP) and Foreign Market Development (FMD) programs, which typically receive approximately $235 million combined annually. 
• USAEDC Executive Director Stephen Sothmann said “The expanded investment in trade promotion will empower American agriculture to overcome trade barriers, develop new markets, and enhance global competitiveness. In a rapidly changing global landscape, and amidst ongoing challenges, diversifying our agricultural export opportunities is more crucial than ever. This is a major victory for our coalition and for every hardworking American farmer.”

USDA ANNOUNCES NATIONAL FARM SECURITY ACTION PLAN

• Rollins introduced USDA’s National Farm Security Action Plan on July 8^th alongside several top officials and policymakers, including Defense Secretary Pete Hegseth, Attorney General Pam Bondi, Homeland Security Secretary Kristi Noem, and trade advisor Peter Navarro.
• The plan includes seven action items aimed at safeguarding American farmland through protective measures around foreign land acquisitions, domestic programs and infrastructure, and supply chain resilience.
• Notably, the plan outlines the need to create a thorough list of critical agricultural inputs required for successful agricultural production and infrastructure security.
• Additionally, USDA launched a foreign farmland purchases webpage for efficient review of anonymous tips on adversarial foreign influence.
• The USDA and the Department of the Treasury signed a Memorandum of Understanding that “memorializes the ongoing relationship and practices” between the departments. The Defense Production Act of 1950 stipulates that the Secretary of Agriculture is to be involved in the Committee on Foreign Investment in the United States (CFIUS) on cases relating to agriculture and biotechnology.

FOOD AID

• USDA announced a new funding opportunity for the Food for Progress Program awards for eligible applicants advancing the objectives of free enterprise in the agricultural sector.
• Food for Progress seeks to improve agricultural productivity and expand trade of agricultural products in emerging economies.
• The deadline for applications is July 31, 2025.
• Meanwhile, the Senate Appropriations Committee did not move Food for Peace administration to USDA. The idea was originally included in a House appropriations bill in June, but the provision was removed during committee markup. The bill does include $1 million for an interagency review of moving the work from the State Department (formerly USAID) to USDA.

Trade Data

JULY 2025 NORTH DAKOTA STATE UNIVERSITY AGRICULTURAL TRADE MONITOR

• North Dakota State University’s latest monthly trade monitor reports China’s agricultural imports are down 18% this year, more than any major global market.
• The report, published Friday, notes “China’s import slowdown is not isolated to U.S. exports but reflects a broader demand contraction.”
• Despite trade diversification maintaining U.S. agricultural exports to other countries, the report points out products dependent on Chinese demand are at five-year export lows, while products supported by demand in Latin America have export gains. Specifically, corn exports are up 29% this year.