TRADE UPDATE

Food & Agriculture
October 28, 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 Trump Administration announced new agreements with Malaysia and Cambodia and frameworks with Thailand and Vietnam over the weekend.
    • President Donald Trump says the United States will buy Argentinian beef in an effort to reduce beef prices faced by American consumers.
    • Trump also canceled further trade negotiations with Canada and hiked tariffs on the country by 10%.
  • Trade Remedies:
    • USTR initiated a Section 301 review into China’s compliance with the “Phase One” agreement that was negotiated and signed during the first Trump Administration.
    • USTR is proposing to remove CAFTA-DR benefits and add 100% tariffs on imports from Nicaragua following an investigation into Nicaragua’s labor and human rights practices as well as the country’s rule of law.
  • World Food Prize:
    • The 2025 World Food Prize was awarded to Mariangela Hungria of Brazil for her work in biological nitrogen fixation using soil-microorganism techniques. A group of 28 World Food Prize Laureates and Chef José Andrés called for doubling investment in emergency food aid and sustainable agriculture.

“Hunger is not someone else’s problem to solve — it is a collective challenge that demands engagement from every corner of society. Let us double down — not in words, but in actions.”

—José Andrés and 28 World Food Prize Laureates in a joint statement calling for investments in emergency food aid and sustainable agriculture

Tariffs and Bilateral Negotiations

TRADE DEALS WITH SOUTHEAST ASIAN COUNTRIES

  • Over the weekend, the Trump Administration announced new agreements with Malaysia and Cambodia, and frameworks with Thailand and Vietnam.
  • Cambodia committed to eliminating tariffs on all U.S. exports and recognized American food safety standards; the U.S. will maintain a 19% reciprocal tariff rate on Cambodian goods. The deal includes commitments on labor, environmental protection, and transparency in geographical indications.
  • In the Malaysia deal, the U.S. secured expanded market access for agricultural exports — including rice, poultry, dairy, and ethanol — alongside streamlined halal certification and pork regionalization. Malaysia also committed to rare earth export guarantees, digital trade liberalization, and removing barriers to remanufactured goods.
  • Thailand agreed to eliminate tariff barriers on 99% of goods, including U.S. industrial, food, and agricultural exports while the U.S. will maintain a 19% reciprocal tariff rate on Thai-origin goods and identify certain commodities for further reduction. The agreement also emphasizes commitments to environmental protection and internationally recognized labor rights, ensuring that trade liberalization is paired with sustainable production.
  • Under the terms of the Vietnam framework, the U.S. will retain a 20% tariff on most Vietnamese goods. In return, Vietnam has pledged “preferential access” for U.S. exports, accepted U.S. vehicle safety and emissions standards, streamlined import licenses for U.S. medical and pharma goods, and reinforced intellectual property commitments.
  • President Donald Trump is also scheduled to meet with Chinese President Xi Jinping on Thursday in South Korea. The meeting comes after Treasury Secretary Scott Bessent noted a “framework” on a deal for the two leaders to discuss that would be “fantastic for U.S. citizens, for U.S. farmers, and for our country in general.”  

ARGENTINIAN BEEF

  • Trump says the U.S. will buy Argentinian beef in an effort to reduce beef prices faced by American consumers.
  • American cattle groups were quick to speak against the idea. The National Cattlemen’s Beef Association opposed the idea, arguing it would interfere with free markets while harming American cattlemen.
  • A group of House Republicans authored a letter to Trump requesting information on the decision, safety and inspection standards, and how the initiative aligns with strengthening American Agriculture.
  • Sen. Deb Fischer (R-NE) urged the administration to focus on trade deals rather than securing imports.
  • In response, Trump attributed U.S. cattle ranchers’ success to the administration’s tariffs and emphasized the need to lower prices for the consumer.
  • USDA released a white paper outlining multiple actions aimed at strengthening the American beef industry.
  • There are multiple reasons for this trend in beef prices, including a prolonged U.S. herd inventory contraction and an outbreak of New World Screwworm in Mexico. In 2024, approximately 16% of U.S. beef imports came from Mexico.
  • Between 2015 to 2024, U.S. beef and beef product imports from Argentina have not exceeded 2% of total U.S. beef imports. The top sources of beef imports are Canada, Australia, Mexico, New Zealand, and Brazil.

CANADA

  • Trump canceled further trade negotiations with Canada in response to a Canadian advertising campaign using a Ronald Reagan speech outlining the negative economic consequences of tariffs and protectionism.
  • On Oct. 22, 2025, Canadian Prime Minister Mark Carney delivered a televised speech outlining his goal for Canada to double its exports outside the U.S. over the next decade.
  • Carney highlighted that Canada’s significant dependence on the U.S. — which currently absorbs over 75% of its exports — has evolved into a strategic vulnerability, citing the increase in tariff levels.
  • While Carney acknowledged Canada’s significant economic growth since the U.S.-Mexico-Canada Agreement (USMCA) was implemented, he asserted that the decades-long process of deep integration with the U.S. has now ended. Carney also signaled a pivot toward global markets like India and China.
  • The Ontario provincial government began an advertising campaign using a speech from former U.S. President Ronald Reagan outlining the negative economic consequences of tariffs. In response, Trump announced that he will raise tariffs “by 10%” over current levels.
  • The USMCA is up for renewal in July 2026 as part of a six-year review. Stakeholder consultations are underway in each of the three countries.

Trade Remedies

USTR INVESTIGATION OF PHASE ONE AGREEMENT IMPLEMENTATION

  • The Office of the United States Trade Representative (USTR) has issued the Initiation of Section 301 Investigation: China’s Implementation of Commitments under the Phase One Agreement; Notice of Hearing; and Request for Public Comments, citing concerns over China’s compliance with commitments on market access, non-tariff barriers, and purchases of U.S. agricultural goods. The review will assess any resulting burden or restriction on U.S. commerce.
  • Key outcomes of the Phase One agreement, signed in Jan. 2020, include China’s commitment to purchase $80 billion of U.S. agricultural products over two years, implementation of a regulatory process for evaluating agricultural biotechnology, transparency on domestic support measures, compliance with WTO obligations regarding tariff-rate quotas, and additional measures regarding product market access and restrictions.
  • USTR will open the public docket for written comments and hearing requests on Oct. 31. Feedback is due by Dec. 1. The Section 301 Committee will convene a public hearing on Dec. 16.

NICARAGUA SECTION 301 INVESTIGATION

  • USTR has proposed action and is soliciting public feedback following an investigation into Nicaragua’s labor and human rights, individual freedoms, and rule of law. 
  • Proposed actions include suspending all or some of CAFTA-DR benefits, including tariff concessions and applying 100% tariffs on all or some of Nicaragua’s imports to the U.S.
  • Public comments on USTR’s proposed actions are due on Nov. 19.
  • In 2024, the U.S. imported nearly $1.4 billion in agricultural and related products from Nicaragua, including $380 million in tobacco, $337 million in beef and beef products, and $240 million in coffee.
  • The U.S. exported $527 million in agriculture and related products in 2024, including $72 million in rice, $64 million in corn, and $60 million in pork and pork products.

World Food Prize

2025 WORLD FOOD PRIZE CEREMONY

  • Mariangela Hungria of Brazil was recently awarded the World Food Prize for her foundational efforts in biological nitrogen fixation. Her work involves using soil microorganism techniques to reduce fertilizer costs, cut greenhouse gas emissions, and boost yields across millions of hectares.
  • A group of 28 World Food Prize laureates and Chef José Andrés published a joint statement calling for doubling investment in emergency food aid and sustainable agriculture.
  • Meanwhile, the ag-tech startup APOLO Biotech won $50,000 in the 2025 “Innovate for Impact Challenge” for developing scalable tools to enhance agricultural productivity and sustainability, reflecting the growing role of entrepreneurial innovation in solving global food-security challenges such as reliance on synthetic pesticides.