Trade
Following President Trump’s decision to impose 25% tariffs on Canada and Mexico, Canada announced its own 25% tariffs on $155 billion worth of U.S. imports. Mexico also announced its own retaliatory measures, but no specifics were unveiled as of Sunday morning.
U.S. farmers and various trade groups are very apprehensive about not only the potential negative impacts of tariffs on the U.S. ag sector, but what they do to garner new trade agreements.
Speaking from the Oval Office, Trump justified the tariffs as a response to what he described as excessive migration, drug trafficking and unfair trade practices. While he suggested the tariff rate could further increase, he indicated a decision on whether oil imports would be exempt would come soon.
During her confirmation hearing, she emphasized her dedication to agriculture and addressed her stance on ethanol, the Renewable Fuel Standard, tariff impact aid for farmers and Prop 12.
President Donald Trump signed several executive orders on stage at a rally in Washington, D.C.'s Capital One Arena on Monday, immediately following inauguration. It marked a dramatic and public start to his administration.
As Donald Trump is sworn in as the 47th president, he’s not expected to impose China-specific tariffs on his first day in office, signaling a strategic shift toward engagement with Beijing rather than reigniting a trade war.
Outgoing USDA Secretary Tom Vilsack sent a letter to Mexico’s Secretary of Agriculture acknowledging the progress made in reopening cattle trade between the two countries following the detection of New World Screwworm, but says more action is needed to resume trade.
Treasury Secretary nominee Scott Bessent outlined a three-pronged approach to tariffs during his Senate testimony this week, including targeted tariffs, general tariffs as revenue generators and tariffs as a negotiation tool.
Trump has long expressed interest in purchasing Greenland, a Danish territory, describing it as “absolutely necessary” for U.S. security. He also raised concerns over the Panama Canal, claiming its current operation by Chinese interests undermines American control of a critical trade route.
USDA’s Animal and Plant Health Inspection Service (APHIS) suspended imports of live cattle and bison from Mexico on Nov. 22, 2024, following the detection of New World screwworm (NWS) along Mexico’s southern border.
Canada is preparing for potential trade challenges following Trump’s threat of a 25% tariff on Canadian imports. The Canadian government is considering a proactive approach, including the possible early release of a retaliatory tariff list.
Speaker Mike Johnson (R-La.), commits to fast-tracking Trump’s legislative agenda by May, which is perhaps the biggest bill in American history. There will be unprecedented spending cuts to help pay for it all, along with newly proposed tariffs on imported goods.
As federal policy decisions tend to heavily impact rural industries, the outcome of the 2024 election promises to significantly shape the rural economy in the year ahead. CoBank’s annual report outlines what to expect.
“I know people are concerned about the tariffs, but the fact is, [Trump] looks at tariffs as a way to get their attention and eventually to get better and reciprocal trade agreements,” says Terry Branstad.
A free trade agreement with the U.S. that could fuel momentum for U.S. red meat in a broader region of Africa.
Tariffs could lead to produce shortages as well as price hikes, experts warn Mexico and Canada are top suppliers of U.S. agricultural imports. Tariffs may disrupt cattle and pork trade between U.S., Mexico and Canada.
Trump said he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate a free-trade deal.
U.S. and Mexican officials are working together on pre-export inspection protocols before resuming live cattle imports into the U.S. The use of sterile flies is also a priority to help control the spread of NWS in Mexico.
New World Screwworm is a serious veterinary pest that can cause severe damage to livestock and wildlife populations. The detection of New World Screwworm in Mexico and the subsequent USDA actions may have significant implications on trade and travel.
Trump taps Howard Lutnick for Commerce Secretary, signaling tariff-heavy trade strategy. Lutnick has called the tariffs a negotiating tool that could be used to convince other countries to bring down their own levies or to force companies to move production to the U.S.
Threats of widespread tariffs and concerns about retaliation continue to stoke uneasiness in agriculture. With a growing trade deficit and hopes the U.S. could re-embark on the Phase One trade deal with China, could the focus back on trade be positive for agriculture?
Financial Times reports say President-elect Donald Trump has asked Robert Lightizer to return as U.S. trade representative.
Trump garnered even stronger support in rural America versus his still robust rural vote in this first administration. That is likely a backlash against the ag policy moves of the Biden/Harris administration that focused on underserved and minority rural citizens.
China braces for continued superpower rivalry regardless of the U.S. election outcome.
As agriculture faces multiple challenges, USDA’s latest net farm income forecast is masking the reality for farmers. While livestock margins have improved for 2024, high input costs and below breakeven prices for row crops means margins could be the worst in nearly 20 years.
USDA forecasts agricultural exports at $173.5 billion and imports at a record $204 billion for a projected record trade deficit of $30.5 billion.
A coalition of over 270 local, state and federal trade associations signed a letter urging President Biden and the administration to use all of its authorities to get the ports open and get the parties back to the negotiating table.
Union head vows to stay on strike ‘as long as necessary’ as the first strike since 1977 halts the flow of goods, ranging from bananas to beef, pork and poultry to industrial materials, leading to potential shortages and price hikes.
The group of terminal operators and ocean container lines said their new offer would increase wages by nearly 50%, triple employer contributions to union retirement plans, strengthen health care options, and retain the current language around automation and semi-automation.
Biden administration officials are meeting with the United States Maritime Alliance (USMX) to urge good faith negotiations in the ongoing labor dispute with the International Longshoremen’s Association (ILA).