USDA Secretary Tom Vilsack says this year’s expected record farm trade deficit is due to a strong U.S. economy and U.S. criticism of a major trading partner, China.
Vilsack says the U.S. economy’s strength, with its stronger dollar, is largely to blame for USDA’s record 32 billion-dollar forecast ag trade deficit this fiscal year.
Vilsack says that the trade relationship with China has been hampered by tensions.
Ag Republicans like South Dakota’s John Thune says that a lack of administration trade deals is the main culprit for the ag trade deficit.
Vilsack says USDA’s trying to do that, but not through free trade deals.
Trade has become an election year issue, and Vilsack was careful in discussing tariffs to level trade imbalances.
Despite Vilsack’s cautious tone on tariffs, President Biden has kept some of President Trump’s tariffs on China that first prompted Beijing to retaliate against U.S. farm goods. The ag trade deficit persists now for the fourth year since 2019.
