Trade Talk: Developments Ahead of August Deadline

Lyndi Allen
July 24, 2025

Preliminary Agreements Could Influence Corn, Ethanol, and DDGS Exports

Trade negotiations have increased as the August 1, 2025 tariff deadline approaches. Recently, there were several preliminary agreements announced between the United States (U.S.) and major trading partners. These announcements do not represent finalized trade agreements but do offer a broad framework to guide further negotiations.


Breakdown by Country:

Japan

An agreement was announced by the White House on July 23 that covers automobiles, airplanes, agriculture products, and more. Although specific details are limited, the framework includes that the Japanese have agreed to invest $550 billion in the U.S.


Also outlined are plans for $8 billion in U.S. ag purchases, including U.S. rice, which is politically sensitive for the Japanese. Also included are U.S. corn and U.S. ethanol purchases.


Japan is the U.S.’s second-largest foreign corn customer and a growing market for U.S. ethanol.


Indonesia

A deal was announced that includes a reduction in Indonesian tariffs on U.S. goods. In return, the U.S. will apply a 19% duty on Indonesian goods.


Indonesia is a significant DDGS market for the U.S. and is a target for U.S. ethanol exports.


Philippines

President Trump announced a 19% tariff rate for imports from the Philippines in return for tariff reductions for U.S. automobiles.


The Philippines’ leaders have indicated a desire to increase imports of U.S. wheat and soybeans. 


USTR Section 301 Investigation

The U.S. Trade Representative’s office announced an investigation into unfair trade practices the Brazilian government has engaged in, explicitly including tariff and non-tariff barriers to U.S. ethanol exports.


Once the top foreign market for U.S. ethanol, Brazilian barriers to trade have reduced U.S. exporters’ ability to access the market.



What It Means Going Forward

While the frameworks are not finalized agreements, they provide a foundation for continued negotiations. IL Corn will continue monitoring these developments and evaluating their implications for corn, ethanol, and DDGS exports as more details become available.

Rodney, Kenneth and Jim
By Lindsay Mitchell October 31, 2025
Celebrating Illinois Ag Leaders
Girl painting a leaf with brush at a table with paints, leaves, and other art supplies.
By Emily Graham October 30, 2025
Farm kids grow up surrounded by creativity—whether it’s building forts from hay bales, sketching tractors, or turning feed sacks into costumes.
By Tara Desmond October 30, 2025
When northern Illinois farmer Dan Sanderson started farming in the 1980s, cover crops weren’t exactly mainstream. Government set-aside programs required planting something like oats, but what stuck with Dan wasn’t the paperwork. It was the difference he noticed in those acres the next year—healthier plants and stronger soils. Decades later, that observation led him down a lifelong road of conservation and soil health improvement. In this episode of IL Corn TV, Dan joins IL Corn board member Shane Gray to talk about his path toward regenerative farming, what he learned at a 2017 Soil Health Academy that changed everything, and why he now treats soil as a living system, not something to manipulate. Dan’s story is one every farmer can relate to—trial and error, lessons learned the hard way, and realizing that “good soil” is about more than yield. 🎥 Watch Part 1 now and catch Part 2 soon, where Dan dives deeper into how he’s reducing inputs, improving soil function, and still keeping his yields strong.
college student
By Tara Desmond October 30, 2025
IL Corn's Scholarship Period Now Open
House Ag Chair Sonya Harper, Director of Ag Jerry Costello, Collin Watters, Justin Moore, Shane Gray
By Lyndi Allen October 30, 2025
House Hearing and New Executive Order Spotlight Economic Pressures on Farmers and Call for Stronger Market Opportunities
A crane loads grain onto a ship at a port at sunset.
By Lyndi Allen October 30, 2025
Corn exports continue to increase at record high volumes, but the value is at a stark low. Burdensome global supplies of corn have weighed on markets.
Show More