U.S. agriculture export prices fell 5.3 percent last month. Data released by the U.S. Department of Labor shows the decline is the largest drop in farm exports since 2011.
The decline in July followed a one percent decrease in June, which followed a 1.6 percent increase in May. The department says a 14.1 percent drop in soybean prices was the primary contributor to the decline in agricultural prices. Meanwhile, export prices for corn, wheat, fruits, and nuts also decreased in July.
The notable change in July can be attributed to the start of tariffs in the trade war between the U.S. and China. The back-and-forth tariff announcements between the two nations include China’s 25 percent tariff on U.S. soybeans. China has also targeted 90 percent of U.S. agricultural goods with tariffs.
All exports, including non-agricultural items, however, remained unchanged in July, along with no change in prices of U.S. imports.