EU-US trade deal gets thumbs up from US farm groups

A tentative trade deal between the United States and the European Union announced just days before significant tariff hikes were set to take effect has received an early upbeat reaction from US agriculture groups.

US President Donald Trump and European Commission President Ursula von der Leyen announced the agreement July 27, revealing a 15% tariff on most European goods entering the United States, including automobiles, chemicals and electronics.

While this agreement avoided the harsher 30% rate previously threatened, many details remain unclear, especially for specific farm products. The deal itself, however, offered a measure of relief for US agriculture groups eager to grow trade access in Europe.

Overall, the EU is the fourth largest market for total exports of US agricultural products, according to the US Department of Agriculture (USDA), with a total value of $12.85 billion. In a social media post, US Department of Agriculture Secretary Brooke Rollins said the EU will purchase $750 billion in US energy, including ethanol.

“NGFA appreciates President Trump’s tireless efforts to expand international markets for US agriculture, and we applaud the announcement of a trade deal framework with the European Union,” said Mike Seyfert, president and chief executive officer the National Grain and Feed Association (NGFA). “This is a meaningful step forward in opening one of the world’s most restrictive markets to American producers. We are encouraged by the president’s call to diversify agricultural trade with the EU, and we look forward to ongoing discussions to build on that goal.

“A stable, rules-based framework also creates an opportunity to address longstanding non-tariff trade barriers. NGFA stands ready to work with the administration to ensure the agreement is finalized and implemented in a way that delivers real results for US agriculture.”

The Corn Refiners Association (CRA) noted that the EU imported about $474 million of refined corn products from the United States in 2024, the third largest export market for US refined corn products.

“Addressing trade issues with the European Union has been a critical need for American agriculture for years, and we are thrilled to see the Trump administration make progress with this important market,” said John Bode, president and CEO of the CRA. “We look forward to learning more about this agreement and seeing how the EU will improve its standing as a trading partner for American farmers, ranchers and agriculture manufacturers. A strong trade relationship between the US and the 27 countries in the EU will benefit producers and consumers on both sides of the Atlantic Ocean.”

In 2024, the EU imported 5.6 million tonnes of soybeans and 1.98 million tonnes of corn from the United States, according to the USDA. The value of US ethanol exported to the EU has jumped 487% over 10 years to $419.91 million.

Although the EU threatened 25% and 30% tariffs on US corn and US sorghum, respectively, early in the negotiations, reports say the EU has agreed to zero tariffs on some ag products, but the EU has not provided a list of specific commodities at this time. Previously, US corn and sorghum have been held to a “floating tariff” that has calculated to be zero for the majority of the last five years, according to the US Grains Council (USGC).

“While we are eager to see the details, the Council thanks President Trump, the USDA and the USTR (Office of the US Trade Representative) for continuing their tireless effort to bring about fair trade between the US and the EU,” said Ryan LeGrand, president and CEO of the USGC. “This deal promises to build upon long-established trade with our eighth largest grains-in-all-forms trading partner worth more than $1 billion in the 2023-2024 marketing year and our fourth largest ethanol trading partner, valued at more than $320 million dollars during the same period.”

The Renewable Fuels Association (RFA) noted that the EU has been a major purchaser of US ethanol in recent years, ranking third with 197 million gallons imported last year. The EU’s 2024 imports of US ethanol represented a 54% increase over 2023, the RFA said. For distiller’s grains, the EU ranked sixth, purchasing 684 million tonnes of US product, 46% above the prior year.

“We thank President Donald Trump and European Commission President Ursula von der Leyen for reaching this important agreement over the weekend, and we are encouraged to see US ethanol mentioned as part of the deal,” said Geoff Cooper, president and CEO of the RFA. “As our nation’s corn growers prepare for what is likely to be a record harvest, we stand ready to produce larger volumes of cleaner-burning ethanol and valuable co-products like distillers grains for customers around the world.

“When markets are open and trade policies are fair, everybody wins. The US ethanol industry looks forward to working with our partners in Europe to continue growing the global production and use of renewable fuels, which are simply more reliable and more affordable than many other energy alternatives.”

Tags: EU, USA, duties, agricultural sector