On September 13, the United States Department of Agriculture (USDA) released the methodology used in calculating trade damage estimates for its Market Facilitation Program (MFP) and Food Purchase and Distribution Program (FPDP). USDA developed an estimate of gross trade damages for commodities with assessed retaliatory tariffs by Canada, China, the European Union, Mexico, and Turkey to set commodity payment rates and purchase levels in the trade mitigation package announced by USDA earlier this month.
In the report, the USDA’s Chief Economist Robert Johansson explained that the gross trade damage only reflects direct export losses due to the retaliatory tariff imposed on the U.S. commodity. Indirect or secondary effects from the tariff, such as cross-commodity effects, are not reflected in the gross trade damage estimate.
Find the full text of the Trade Methodology Report here.