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Current record-high U.S. agricultural trade deficit numbers are projected to dramatically increase to $42.5 billion in fiscal year 2025, reported USDA’s Economic Research Service (ERS) in late August. The 2025 projection marks a $10.5 billion increase from the current 2024 trade deficit estimate.
“This growing deficit highlights the importance of the U.S. restarting agricultural trade negotiations with major trading partners. As other countries benefit from low tariffs in key markets, the U.S. lags behind through our own failures to take action,” said Ted Tschirky, NPC VP of Trade Affairs and potato grower from Washington state.
According to the report, “Fresh vegetables imports are forecast to grow by $700 million, or 5 percent, in FY 2025 to $13.5 billion. Likewise, volumes are forecast to grow by 200,000 metric tons. These increases are partially associated with expectations of improved growing conditions in Mexico, the largest import supplier. Processed vegetables are expected to grow $400 million to $9.1 billion, and volumes are increased 200,000 metric tons over FY 2024. Frozen french fries are a major import and Canada’s large potato stock coupled with relatively low prices are expected to facilitate another strong year of imports.”
Read the full estimate here.
