TRADE UPDATE

Food & Agriculture
July 8, 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:
  • Many countries are scrambling to reach an agreement with the U.S. as the 90-day pause on reciprocal tariffs comes to an end on July 9.
  • President Donald Trump indicated he would send letters to countries notifying them of new tariff rates that would apply on Aug. 1.
  • Progress slowed on a deal with Japan after the country vowed to protect its domestic farmers from U.S. imports.
  • Trump announced a trade deal with Vietnam on Wednesday, although details of the agreement have not been made public.
• USDA:
  • Agriculture Secretary Brooke Rollins touted improved market access for U.S. poultry products to Namibia after the country removed certain regulations on exports.
  • The U.S. Department of Agriculture announced a new slate of appointees, including Michelle Bekkering as Deputy Under Secretary for Trade and Foreign Agricultural Affairs and Peter Laudeman as Senior Policy Advisor for Trade and Foreign Agricultural Affairs.
• International Organizations:
  • The Food and Agriculture Organization of the United Nations called for renewed collective action to alleviate global food insecurity at their biannual ministerial in Rome.

“I urge you to work with Congress on your efforts to negotiate and conclude trade deals. The process for approving and implementing any such agreements must respect Congress’s constitutional authority over trade and power to write U.S. law.”

—Sen. Ron Wyden (D-OR) in a letter to U.S. Trade Representative Jamieson Greer

Tariffs and Bilateral Negotiations

RECIPROCAL TARIFFS DEADLINE

• The 90-day pause on reciprocal tariffs announced on April 2 ends on July 9.
• Last week, President Donald Trump indicated he would send letters to countries notifying them of new tariff rates that would apply on Aug. 1.
• Treasury Secretary Scott Bessent commented on CNN that “President Trump’s going to be sending letters to some of our trading partners, saying that, ‘if you don’t move things along, then, on August 1, you will boomerang back to your April 2 tariff levels.’”
• On Sunday, Trump threatened an additional 10% tariff on “any country aligning themselves with the Anti-American policy of the BRICS,” an intergovernmental group of 10 countries: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates, and Indonesia.
• In a July 2 letter, Sen. Ron Wyden (D-OR) reminded U.S. Trade Representative Jamieson Greer that all binding trade agreements require congressional approval, which makes the administration’s goal of 90 trade deals in 90 days less feasible.

US-VIETNAM

• In a Truth Social post on Wednesday, Trump announced a trade deal with Vietnam. Under the terms of the deal, Vietnam will pay a 20% tariff on exports to the U.S. as well as a 40% transshipping tariff. In return for a U.S. tariff reduction, Trump said Vietnam will “give the United States of America TOTAL ACCESS to their markets for trade,” Trump said in the post, allowing for U.S. imports with zero tariffs.
• In recent weeks, Vietnam has committed to importing more than $3 billion in U.S. ag products through memoranda of understanding with U.S. exporters.
• According to USDA’s Foreign Agricultural Service, Vietnam is the tenth largest export market for U.S. agricultural exports, growing on average 4.2% annually from 2015 to 2024. Top U.S. agriculture exports to Vietnam are cotton, soybeans, and tree nuts.

US-JAPAN TRADE DEAL HALTED OVER AGRICULTURE

• On Tuesday, Japanese Chief Cabinet Secretary Yoshimasa Hayashi said Japan will continue trade negotiations with the U.S. but will not compromise on agricultural market access.
• In a Truth Social post, Trump shared his disappointment over Japan’s decision not to import more U.S. rice.
• Trade discussions between the two countries had been ongoing for weeks, following a visit to Washington in late May. Now, the administration seems less hopeful a deal will be reached; Trump indicated a new tariff rate letter will be sent to Japan soon.

USDA

ROLLINS NOTES TRADE WIN FOR US POULTRY

• Agriculture Secretary Brooke Rollins recently hailed increased market access to Namibia, with the country now accepting fresh, frozen, and chilled poultry exports from the U.S., according to a USDA press release.
• Additionally, Namibia removed restrictive transit permit requirements, improving the ease of exporting these agricultural products.
• USDA values this new market at $15 million for U.S. exporters.
• In 2024, the U.S. exported about $23 million in agriculture and related products to Namibia, of which $18 million was soybeans.

USDA ANNOUNCES NEW TRUMP ADMINISTRATION APPOINTMENTS

• Rollins recently announced several new appointees to key USDA roles, including Michelle Bekkering as Deputy Under Secretary for Trade and Foreign Agricultural Affairs and Peter Laudeman as Senior Policy Advisor for Trade and Foreign Agricultural Affairs.

International Organizations

2025 UN FAO CONFERENCE

• The 44^th Session of the Food and Agriculture Organization of the United Nations (FAO) met from June 28 to July 4 to approve the budget of the organization and make recommendations for food and agriculture policy.
• FAO Director-General Qu Dongyu delivered the opening remarks, which highlighted the need for efficiency and collective action to build resilient global food systems in light of recent funding and environmental challenges.
• During an inaugural FAO Treaty Ceremony at the conference, several members formally deposited new legal instruments, reaffirming their countries’ commitment to rules-based international cooperation.
• Bekkering represented U.S. interests at the conference and gave a statement urging FAO to focus more narrowly on practical solutions to agricultural productivity backed by science rather than being sidetracked by narratives like diversity, equity, and inclusion (DEI) or sustainable development initiatives.
• Bekkering also highlighted that the U.S. is the largest bilateral donor to the FAO.