NC business, agriculture leaders react to trade deals with UK, China

The US recently reached trade deals with the United Kingdom and China, bringing some welcome news to those who want to see a return to more open trade among nations. 

Last week, a trade deal was reached with the UK, followed by another trade deal with China announced from Geneva, Switzerland, on Sunday. The agreement with China is a 90-day pause on the recently enacted tariffs, allowing a more permanent deal to be brokered. 

In North Carolina, business leaders watched these international developments with cautious optimism.

“The recent trade agreements with the United Kingdom and China are a positive step toward greater certainty for North Carolina businesses,” North Carolina Chamber vice president of government affairs Jake Cashion told the Carolina Journal. “Predictable and transparent trade policy gives job creators the confidence they need to invest, grow, and hire.”

Cashion said, in its focus on “advancing pro-growth policies that strengthen [North Carolina’s] competitive position,” the NC Chamber is also prioritizing “swift congressional extension of the Tax Cuts and Jobs Act” and regulatory reform.

Farmers across the state also reacted optimistically to the trade news, after months of anxiety over trade wars and rising costs. Tobacco farmers continue to watch as the markets are set to open late summer, coinciding with the end of 90 days. Many hope a more lasting trade agreement will be in place when the market opens.

“The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all of the products produced by our great farmers,” said President Donald Trump in a White House press release.

The US–UK trade deal is set to significantly boost US market access in the UK, unlocking a $5 billion opportunity for new exports, particularly benefiting American farmers, ranchers, and producers. This includes over $700 million in ethanol exports and $250 million in other agricultural goods such as beef.

The agreement fosters collaboration between the two countries to enhance both industrial and agricultural market access, while also improving the competitiveness of US firms by closing procurement loopholes and streamlining customs procedures. It establishes high-standard commitments in intellectual property, labor, and environmental practices. Additionally, the deal strengthens critical supply chains, granting US aerospace manufacturers preferential access to high-quality UK components and creating a secure supply chain for pharmaceutical products. 

“We do ship a lot of products to the UK, particularly sweet potatoes and tobacco,” Steve Troxler, commissioner of the North Carolina Department of Agriculture and Consumer Services (NCDA&CS) told the Carolina Journal. “A favorable agreement with the UK is very beneficial to North Carolina agriculture and our farmers.”

One of the largest North Carolina producers and exporters of sweet potatoes and tobacco is Scott Farms, based in Lucama, about an hour outside Raleigh. Scott Farms harvests over 4,500 acres of sweet potatoes and 4,000 acres of tobacco. Due to its significant international exports, Scott Farms has marketing and sales offices in the UK. 

“This is going to boost trade between and across our countries,” Keir Starmer, UK prime minister, said in a press release. “It’s going to not only protect jobs, but create jobs, opening market access.” 

Additionally, the US-China trade deal announced on Sunday following negotiations in Geneva over the weekend will go into effect on May 14. Both countries agreed to lower tariffs by 115%, suspend for 90 days the 34% tariffs enacted, and keep the baseline tariff of 10% in place.

“The 90-day tariff reduction deal with China is welcome, but for many American farmers, especially in states like North Carolina, it’s too little, too late,” Kelly Lester, policy analyst for the Center for Food, Power and Life, at the John Locke Foundation, told the Carolina Journal. “The reputational damage is already done — Chinese buyers have signed long-term contracts with Brazil and other competitors, and those markets won’t be easy to win back.”

Lester continued, “For evidence, we can look at soybean exports. During the 2018 trade war, US soybean exports to China dropped by more than 50%, and Brazil stepped in to meet demand. Although some Chinese buyers resumed contracts with American producers, the damage to US market share and reputation has never fully healed. So, while the reduction is good news, damage has already happened. The reality is markets can disappear faster than they can be rebuilt, and short-term deals don’t undo lost trust and opportunity.”

China has agreed to lift the retaliatory tariffs it has imposed since April 4 and will also suspend or eliminate the non-tariff countermeasures enacted against the US since April 2. In addition, China will temporarily suspend its initial 34% tariff on US goods, which was announced on April 4, for 90 days. 

“I’m really concerned about the impact of tariffs on North Carolina’s economy,” Gov. Josh Stein told the Carolina Journal during a press huddle following a recent Council of State meeting. “Commissioner Troxler was talking about how last year was a really tough year for agriculture. Soybeans and hogs are two of the biggest crops we produce in North Carolina, and we export a great percentage of them. Exports to China are down something like 72% in hogs and over 80% in soybeans, and that is gravely concerning. I hope that there starts to be some rationale to the daily changes in our federal tariff policy, because it’s going to hurt consumers; it’s going to hurt manufacturers. It’s certainly hurting our agricultural folks.”  

The United States will lift the additional tariffs imposed on China on April 8 and 9, 2025. All tariffs implemented before April 2 — including those under Section 301 and Section 232 and those tied to the fentanyl national emergency under the International Emergency Economic Powers Act and Most Favored Nation (MFN) duties — will remain in place. The Most Favored Nation clause is the first article of the General Agreement on Tariffs and Trade (GATT).

“We in agriculture, particularly North Carolina agriculture, depend a lot on exports,” said Troxler. “So I am encouraged that the two largest economies in the world have gotten together to discuss trade, and I hope even more talks will result in more free trade with China.”