U.S. farm trade deficit hits record as imports surge

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The U.S. agricultural trade gap deepened in July, underscoring a mounting challenge for President Donald Trump as he pledges to restore the sector’s global competitiveness.

Farm imports outpaced exports by $4.97 billion in July, a 9% increase from a year earlier and the largest deficit ever recorded for that month, according to Department of Agriculture data released Monday. For the year through July, the deficit reached an unprecedented $33.6 billion.

The shortfall is being driven largely by rising imports, even as the administration has imposed new tariffs aimed at reducing the broader U.S. trade imbalance. The shift cements a trend that began in Trump’s first term, with agriculture moving from decades of consistent trade surpluses to becoming a net importer.

Several factors are behind the reversal: limits on expanding U.S. farm output, growing competition from suppliers abroad and increased domestic use of crops for biofuel production. Trade tensions have also played a role, with China (once a major buyer of U.S. commodities) turning increasingly to Brazil for supplies.

In the first seven months of 2025, U.S. farm imports rose nearly 8% to more than $132 billion, while exports fell 1.3% to $98.8 billion. The deficit may widen further as a fresh round of tariffs, layered on top of levies introduced earlier this year, took effect in August.

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