US Farm Trade Deficit Widens to New Record as Imports Surge
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The U.S. agricultural trade deficit widened further in July, highlighting the challenge facing President Donald Trump as he vows to reverse the trend.
Agricultural exports lagged imports by $4.97 billion in July, a gap 9% wider than a year earlier and the largest on record for the month. That pushed the sector’s deficit to an unprecedented $33.6 billion for the first seven months of the year, according to data released Sept. 8 by the Department of Agriculture.
The widening farm trade gap this year has been mostly driven by a jump in imports, just as Trump slapped tariffs on other countries in a push to shrink the overall deficit. That further cements a shift that has been building since the president’s first term, with a sector that has long run major trade surpluses becoming a consistent net importer.
The change in fortunes comes as a result of limited capacity to expand crop and livestock production, increased competition overseas and Americans’ growing appetite for imported goods. Trump’s trade wars have also played a role, pushing China — the world’s largest crop importer — to rely more heavily on Brazil for its supplies. The U.S. is also processing more of its crops domestically to produce biofuel, reducing exportable surpluses.
The U.S. imported more than $132 billion in agricultural goods in the first seven months of 2025, almost 8% more than a year earlier. Meanwhile, the sector’s exports slid 1.3% to $98.8 billion, according to USDA data.
A sweeping new round of U.S. tariffs officially took hold in August, adding to baseline rates imposed in April.
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