USDA Faces Scrutiny Over Trade Report Delay, Tariff Impact Omission

Concerns are mounting over the credibility of U.S. Department of Agriculture (USDA) trade data following a delayed quarterly report and the omission of key explanatory content, according to Reuters interviews with four analysts. The controversy centers on the USDA’s decision to withhold findings that linked tariffs and reduced international demand—driven by sentiments like “Buy Canadian”—to the rising agricultural trade deficit.

The quarterly report, typically co-authored by the USDA’s Economic Research Service (ERS) and Foreign Agricultural Service (FAS), was set for release on May 29 but was pulled at the last minute. Sources say the authors were questioned by officials about attributing the worsening deficit to Trump-era tariffs, despite the administration’s stance that tariffs would benefit U.S. farmers.

The report, eventually released without its usual explanatory text, forecasted the fiscal year 2025 agriculture trade deficit at $49.5 billion—up from $49 billion previously. While USDA insists the data remains accurate, the lack of transparency raised red flags among market participants. “The trade is uneasy about USDA statistics now,” said Charlie Sernatinger of Marex.

Analysts expressed concern over the increasing politicization of economic data. Patrick Westhoff of the University of Missouri warned that staffing cuts—27% of ERS and 14% of FAS—under the Trump administration could further compromise data integrity.

Historically, the U.S. enjoyed a farm trade surplus, but rising imports of high-value goods like alcohol, fruits, and vegetables have shifted the balance. The current deficit raises questions about how protectionist policies and reduced USDA capacity may undermine the reliability of future reports.

This episode, first reported by Politico, underscores broader fears about the objectivity of federal data in a politically charged environment.