TRADE UPDATE

Food & Agriculture
November 4, 2025

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Ameya Khanapurkar, Project and Policy Coordinator, and Jacob Slattery, CRA Intern

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HIGHLIGHTS

  • Tariffs and Bilateral Negotiations:
    • The U.S.-China trade war has reached a détente, with reduced tariffs, resumed purchases of U.S. soybeans, a pause in export controls of rare-earth minerals, and more.
    • Details on the U.S.–South Korea deal’s investment fund show a focus on investment in U.S. shipbuilding.
    • The U.S.–Japan deal’s investment fund details have emerged, with $600 million allocated for transportation infrastructure.
  • USMCA:
    • A letter signed by 124 American food and agricultural organizations in support of a full 16-year renewal of the U.S.-Mexico-Canada Agreement (USMCA) was submitted as part of the public consultation process for the Joint Review of the USMCA.
  • China:
    • China and the 11 Association of Southeast Asian Nations (ASEAN) countries have upgraded a free trade agreement.
  • Congress:
    • The Senate voted in favor of three resolutions to restrict President Donald Trump’s tariff powers. In the House of Representatives, current rules prevent these resolutions from being considered for a vote.
    • The Senate Finance Committee held a hearing to consider several nominations — including Julie Callahan, who was nominated to be Chief Agricultural Negotiator in the Office of the United States Trade Representative (USTR).

“I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products. Our Farmers will be very happy! In fact, as I said once before during my first Administration, Farmers should immediately go out and buy more land and larger tractors. I would like to thank President Xi for this!”

—President Donald Trump via Truth Social

Tariffs and Bilateral

CHINA PURCHASES FIRST CARGOES OF SOYBEANS THIS SEASON

  • China committed to resume purchases of U.S. soybeans following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
  • U.S. Treasury Secretary Scott Bessent said China agreed to buy 12 million metric tons (MMTs) of soybeans from U.S. farmers this year and 25 MMTs in each of the next three years.
  • The American Soybean Association celebrated this development, though noting they are waiting for details to emerge and be confirmed by China.
  • Trump also noted the resumption of China buying soybeans in a press conference following his meeting. The U.S. also agreed to reduce fentanyl related tariffs from 20% to 10%, and China agreed to pause export constraints on rare-earth minerals for one year.
  • Bessent said the U.S. and China had both agreed to suspend port fees on each other’s ships, putting on hold implementation of actions with the U.S. Section 301 investigation.
  • The U.S. Section 301 investigation into China’s compliance with the Phase I agreement is ongoing, according to U.S. Trade Representative Jamieson Greer.

US–SOUTH KOREA TRADE DEAL INVESTMENT FUND

  • Trump announced that the investment fund included in the U.S.–South Korea deal has been finalized.
  • The White House announcement did not specify the amount but highlighted investments in American shipbuilding.
  • This announcement follows the July agreement, which set U.S. tariffs on Korean products at 15% and broadly outlined a plan for Korean investment in the U.S.

US–JAPAN TRADE DEAL INVESTMENTS COMMITMENT

  • The White House announced details of the $550 billion investment commitment from Japan into the United States, which is spread across energy infrastructure, artificial intelligence (AI) infrastructure, electronics and supply chain, critical minerals, and manufacturing and logistics.
  • The announcement includes $600 million to upgrade ports and waterways across the southern United States. There’s also a Memorandum of Cooperation (MOC) to expand shipbuilding capacity in both nations by aligning investment, procurement, workforce, and technology initiatives.
  • This announcement builds on Japan’s July agreement to a framework, which included a 15% U.S. tariff on Japanese goods and a commitment to the investment package, which was formally implemented through a U.S. executive order in September.

USMCA

US AG INDUSTRY LETTER IN SUPPORT OF RENEWING USMCA

  • A new letter from 124 American food and agricultural organizations calls for a full 16-year renewal of the United States-Mexico-Canada Agreement (USMCA). The letter was submitted as part of the public consultation process for the Joint Review of the USMCA.
  • The letter argues it is “critical not to backslide on the current provisions of USMCA and to ensure that trade certainty is maintained and strengthened.”
  • The letter also emphasizes the importance of USMCA in ensuring regional competitiveness and resilience.
  • Hearings for the USMCA review are scheduled for Nov. 17.

China

ASEAN–CHINA FREE TRADE AGREEMENT UPGRADE

  • China and the 11 Association of Southeast Asian Nations (ASEAN) countries signed an upgraded version of their free trade agreement.
  • New areas of cooperation include digital and green economies, supply chain connectivity, consumer protection, and support for small- and medium-sized enterprises.

Congress

SENATE VOTES AGAINST TARIFFS

  • A series of bipartisan Senate votes signaled concern about the Trump Administration’s tariff strategy.
  • The Senate voted 52–48 on Oct. 28 to block a proposed 50% tariff on Brazilian imports, which had been enacted under a national-emergency declaration.
  • On Oct. 29, the Senate passed a similar resolution to nullify tariffs against imports from Canada.
  • On Oct. 30, the Senate passed a resolution to end the national emergency declared by President Trump, which would terminate the global reciprocal tariffs.
  • Current House rules prevent the resolutions from being considered for a vote in that chamber.

NEW CHIEF AGRICULTURAL NEGOTIATOR

  • The U.S. Senate Committee on Finance held a hearing to consider several nominations — including Julie Callahan, who was nominated to be Chief Agricultural Negotiator in the Office of the United States Trade Representative (USTR).
  • In her opening statement, Callahan said she would prioritize “new market access” and ensuring U.S. growers are not disadvantaged compared with foreign competitors. She highlighted that many U.S. trading partners “don’t treat the United States as well as we treat them.”
  • Chairman Mike Crapo (R-ID) noted that her nomination is supported by over 80 trade associations representing farmers, ranchers, and food manufacturers.