Latest News From Trade

The U.S. And Europe Are At Odds Over Trump-Era Tariffs, And It's Now Causing Strained Relations
The U.S. And Europe Are At Odds Over Trump-Era Tariffs, And It's Now Causing Strained Relations

While the U.S. and EU aim to make progress during an upcoming summit, reaching a final agreement is uncertain. This issue has significant implications for U.S./EU ties, climate goals, and geopolitics.

Crude Awakening: Rising Oil Prices Complicate Fed's Rate-Hike Decisions
Crude Awakening: Rising Oil Prices Complicate Fed's Rate-Hike Decisions

As brent crude futures soar toward $100, it's creating a new battle in the Federal Reserve's effort to fight inflation. One money manager warns another rate hike is likely. 

John Phipps: Trying to Explain the Unexplainable in China
John Phipps: Trying to Explain the Unexplainable in China

China's GDP growth could possibly drop lower than the U.S. this year. In fact, fewer and fewer sectors are healthy, and only then by direct government intervention.

$19 Billion Ag Trade Deficit Expected for FY 2023
$19 Billion Ag Trade Deficit Expected for FY 2023

USDA on Thursday lowered expectations for both ag exports and imports in FY 2023. The export decline is linked to corn and wheat, while the import decline is correlated with easing prices.

Buckle Up: Dispute Panel Called to Action by US in Mexico’s GMO Corn Ban
Buckle Up: Dispute Panel Called to Action by US in Mexico’s GMO Corn Ban

“Mexico’s decree, which runs counter to scientific findings and is in direct violation of USMCA, is negatively impacting American corn growers,” said Tom Haag, NCGA president.

Ag Economists Turn More Positive Longer-Term On the Farm Economy
Ag Economists Turn More Positive Longer-Term On the Farm Economy

The July Ag Economists' Monthly Monitor showed several key changes from June including a bigger cut to corn and soybean yields, a drop in corn and soybean prices and more bullish cattle and hog prices.

Preliminary Trade Agreement Between U.S., Taiwan Garners Approval from Senate
Preliminary Trade Agreement Between U.S., Taiwan Garners Approval from Senate

The leaders also drafted a proposed legislation earlier this month that promises treaty-like benefits for businesses seeking cross-border investment opportunities via the tax code.

China's Exports Decline 12.4% Year-Over-Year
China's Exports Decline 12.4% Year-Over-Year

This slump, deeper than May's 7.5% drop, represents the largest decline since February 2020.

USTR Comments on USMCA Meetings
USTR Comments on USMCA Meetings

During a bilateral meeting on Thursday, U.S. Trade Representative Katherine Tai discussed with Mexico's Secretary of Economy Tatiana Clouthier various issues concerning energy and biotech corn.

USMCA Up for Debate in Mexico This Week
USMCA Up for Debate in Mexico This Week

Representatives from the U.S., Mexico and Canada will meet in Cancun, Mexico this week to discuss a series of disputes, including Mexican energy and biotech policies and Canadian dairy barriers.

US and China: A New Trade War?
US and China: A New Trade War?

Beijing on Monday announced export controls on gallium and germanium. Now the Biden administration is set to restrict Chinese companies’ access to U.S. cloud-computing services that use AI chips.

High Production Costs Could Weigh on the Ag Economy Through 2024, New Survey of Economists Finds
High Production Costs Could Weigh on the Ag Economy Through 2024, New Survey of Economists Finds

The Ag Economists’ Monthly Monitor is a new survey of nearly 50 economists. Most ag economists agree the next 12 months could produce more financial pressure for agriculture, but their views vary depending on commodity.

US Has Seen Consistent Growth in Ag Exports to Mexico Under NAFTA, USMCA
US Has Seen Consistent Growth in Ag Exports to Mexico Under NAFTA, USMCA

Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.

US Moves to Full Blown Trade Dispute with Mexico Over GMO Decree
US Moves to Full Blown Trade Dispute with Mexico Over GMO Decree

“We fundamentally disagree with the position Mexico has taken on the issue of biotechnology, which has been proven to be safe for decades,” said Tom Vilsack, USDA secretary.

Ag Trade Between Russia and China Increased to 153% in April
Ag Trade Between Russia and China Increased to 153% in April

China's exports to Russia reached a record high in April, amounting to $9.6 billion.

U.S. Trade with the World Rose in March
U.S. Trade with the World Rose in March

Exports rose 2.1% in March from the prior month to a seasonally adjusted $256.2 billion while imports declined 0.3% to $320.4 billion, the Commerce Department said.

Canada Warns on 'Product of USA' Regulation
Canada Warns on 'Product of USA' Regulation

Currently, foreign meat that is processed in U.S. plants can be labeled “Product of USA.”  Arun Alexander, Canada’s deputy ambassador, isn't convinced this is a good practice.

USTR's Trade Strategy: Stronger Ties with Like-Minded Countries
USTR's Trade Strategy: Stronger Ties with Like-Minded Countries

Non-tariff barriers “are real and can be more significant hurdles than tariffs,” U.S. Trade Representative Katherine Tai says.

USTR Tai Continues to Push Trade Policy Focused on Non-Tariff Barriers
USTR Tai Continues to Push Trade Policy Focused on Non-Tariff Barriers

While Tai has faced strong criticism about a lack of new trade agreements being pursued, she claimed this week that the U.S. is “nearing a consensus on the need to do things differently.”

US Importers Carried the Burden of Chinese Tariffs Placed by President Trump
US Importers Carried the Burden of Chinese Tariffs Placed by President Trump

Former President Donald Trump placed tariffs on more than $300 billion in Chinese goods during his presidency, raising costs for American companies, according to the ITC.

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Free-Trade Approach Pushed on the Biden Administration is Met with Backlash

"It would be a lost opportunity if we just sit on the sidelines and watch other countries engage while the playing field continues to tilt against us," said Rep. Smith (R-Neb.).

US Trade Rep Tai to Discuss Biden's Trade Agenda Today
US Trade Rep Tai to Discuss Biden's Trade Agenda Today

"In this current situation, the traditional approach to free trade agreements — which isn't just tariff cuts, but that they do tariff cuts on a fully comprehensive basis — isn't what we need right now,” Tai says.

The Cost of a Farm Bill: 2023 Row Crop Priorities
The Cost of a Farm Bill: 2023 Row Crop Priorities

The 2018 farm bill was stamped with a $428 billon price tag when passed. With the bill set to expire on Sept. 30, here’s a breakdown of the topics ag groups look to push on the negotiating table.

SHIP IT Act Could Save Truck Drivers Up to $10,000 and Cover CDL Costs
SHIP IT Act Could Save Truck Drivers Up to $10,000 and Cover CDL Costs

Reps. Dusty Johnson and Jim Costa on Tuesday introduced the Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act to expand the trucking workforce and offer flexibility in times of need.

U.S. Could Run Out of Money by Thursday if the Debt Limit Isn't Lifted
U.S. Could Run Out of Money by Thursday if the Debt Limit Isn't Lifted

If the nation’s debt hits $31.4 trillion—it’s on track to do so by this Thurs.—the Treasury will need to take “extraordinary measures” to help pay the government's operations and ward off a historic default.

China to Adjust Trade Tariffs Starting Jan. 1
China to Adjust Trade Tariffs Starting Jan. 1

Export tariffs on aluminum and aluminum alloys will be raised. The current import tariff will stay on seven types of coal until March 31, with tariffs adopted for most favored nations from April 1.

Mexico's GMO Corn Debate Tabled Until 2025, According to Mexico
Mexico's GMO Corn Debate Tabled Until 2025, According to Mexico

Minister Victor Villalobos said U.S. officials were satisfied with a proposal to delay a ban on the import of GMO corn until 2025, according to a published report.

Senate Confirms Alexis Taylor as USDA Trade Under Secretary
Senate Confirms Alexis Taylor as USDA Trade Under Secretary

The Senate on Wednesday confirmed Alexis Taylor for Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. According to Taylor, her priorities include addressing export markets and food insecurity.

USMCA as a Framework: New Talks Between U.S., Ecuador, Uruguay
USMCA as a Framework: New Talks Between U.S., Ecuador, Uruguay

Government officials asked U.S. Trade Rep. Katherine Tai to capitalize on the success of the USMCA and expand relations in the Western Hemisphere. 

Water Resources Bill Reauthorized with a Component that Will Impact Producers
Water Resources Bill Reauthorized with a Component that Will Impact Producers

The Fertilizer Institute applauded the passage of the legislation, which it dubbed an “integral” component of the fertilizer distribution system.

U.S./EU Spark a Trade Spat Over Limitations in the Inflation Reduction Act
U.S./EU Spark a Trade Spat Over Limitations in the Inflation Reduction Act

Europeans argue that the act is a beggar-thy-neighbor scheme designed to lure investors away from Europe, just as the region's economy teeters on the verge of recession.

What You Need to Know About Vilsack's GMO Corn Conversation in Mexico
What You Need to Know About Vilsack's GMO Corn Conversation in Mexico

Vilsack urged Mexico to "find a way forward" and said that if Mexico's plans went unchanged, the U.S. government would be forced to consider all options, including legal action under the USMCA.

Japan Gives Final Approval for Beef Trade Provisions
Japan Gives Final Approval for Beef Trade Provisions

The change will reduce the probability that U.S. beef could be hit with higher Japanese tariffs, according to the Office of the USTR.

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Chinese Delegates Meet with Top U.S. Officials in New York

China moved to close parks, malls and museums on Tues. as COVID-19 cases hit near-record levels. Lockdowns follow reports that, days before COP27, Xi sent policy and business advisers to New York to meet U.S. executives.

Rail Strike Update: Labor Deal Deadline Shortened to Dec. 5
Rail Strike Update: Labor Deal Deadline Shortened to Dec. 5

Unions and railroads are back at the negotiating table. By law, Congress can intervene to impose an agreement if the two sides remain deadlocked. However, one union is now on schedule to strike Dec. 5.

Foreign Carriers Offered Loophole to Leave U.S. Ports Without Goods, Despite Active Legislation
Foreign Carriers Offered Loophole to Leave U.S. Ports Without Goods, Despite Active Legislation

Congressmen who penned the Ocean Shipping Reform Act of 2022 are calling on the Federal Maritime Commission to mend the gap and provide "reasonable opportunities" for U.S. exporters to get their goods to foreign markets.

China Cites U.S. Ag for Why It's Chosen Not to Invade Taiwan
China Cites U.S. Ag for Why It's Chosen Not to Invade Taiwan

“In the last 2,500 years, every Chinese government that has fallen, has fallen over food,” says Kuehl, Armada chief economist. “They need those import markets—be it from the U.S, Canada, Brazil or Australia."

U.S. Diesel Crisis Lingers as Europe Prepares for Russian Oil Ban
U.S. Diesel Crisis Lingers as Europe Prepares for Russian Oil Ban

Global diesel and distillate fuel stocks have fallen to dangerous levels and the U.S. has been exporting a lot of diesel to Europe and Latin America, but now things are changing.

How Prop 12 Could Impact Crop and Livestock Producers
How Prop 12 Could Impact Crop and Livestock Producers

“If California were to win this Supreme Court case, there’s nothing stopping the state from saying, for example, you can only sell corn in California if it’s harvested with an electric combine,” says Dillard.

Shipping Container Rates Down 63%, But We're a Long Way From Back to Normal Operations
Shipping Container Rates Down 63%, But We're a Long Way From Back to Normal Operations

Have the Pacific Coast port bottleneck issues been resolved, or moved somewhere else? The East Coast may now be carrying the burden.

John Phipps: Are Tariffs Part Of The Problem With Inflation?
John Phipps: Are Tariffs Part Of The Problem With Inflation?

Do tariffs fuel inflation? John Phipps's Customer Support segment explains why economists have struggled to come up with estimates of economic effects due to lingering COVID influence on world business.

USMCA Disputes Run Ramped Again, This Time with Mexico
USMCA Disputes Run Ramped Again, This Time with Mexico

“We have tried to work constructively with the Mexican government to address these concerns, but, unfortunately, U.S. companies continue to face unfair treatment in Mexico," said Ambassador Tai.

Labor Contract Negotiations Continue Past Deadline at Some of America's Most Important Ports
Labor Contract Negotiations Continue Past Deadline at Some of America's Most Important Ports

U.S. Labor Secretary Marty Walsh remained optimistic about contract negotiations between workers and shipping companies for some of the country’s most important ports, even as talks extend past a previous deadline.

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Japan's Growing Demand for Quality U.S. Beef is Officially Safeguarded

According to the Office of the USTR, the safeguard will allow U.S. exporters to meet Japan’s growing demand for high-quality beef while minimizing the odds that Japan will increase tariffs.

John Phipps: Why the Long-Awaited Transpolar Shipping Route Could Now Be Reality by 2050
John Phipps: Why the Long-Awaited Transpolar Shipping Route Could Now Be Reality by 2050

Estimates of when new routes will be regular shipping lanes keep advancing. It looks like the long-awaited transpolar shipping route could be a real thing around 2050. John Phipps explains why and the possible impact

Mexico’s Zero-Duty Order Benefits European Pork and Brazilian Poultry
Mexico’s Zero-Duty Order Benefits European Pork and Brazilian Poultry

Mexico’s duty suspension is likely to benefit European pork and Brazilian poultry, while beef imports remain relatively unchanged.

Who Actually Won the U.S., China Trade War?
Who Actually Won the U.S., China Trade War?

The U.S.-China trade war began in July 2018 when the Trump administration imposed tariffs on $550 billion worth of Chinese goods. Nearly four years later, the debate remains as to which country actually won.

Inflation, Shipping Struggles And Zero-Covid Policy: All Challenges U.S. Meat Exports Seem To Be Shaking Off
Inflation, Shipping Struggles And Zero-Covid Policy: All Challenges U.S. Meat Exports Seem To Be Shaking Off

Higher prices at the grocery store don’t seem to be causing consumers to veer away from the meat counter. Robust meat demand abroad is also setting sail, despite inflation and shipping struggles.

John Phipps: The Truth Behind the Numbers in Calculating Agriculture's Trade Balance
John Phipps: The Truth Behind the Numbers in Calculating Agriculture's Trade Balance

John Phipps says positive or negative, any trade balance has dubious value, and only limited prediction power. Other than bragging rights, they mean little with no economic advantage for having a positive trade balance.

China Can't Control Latest COVID-19 Outbreak, and It Could Now Constrict Containers at World's Busiest Port
China Can't Control Latest COVID-19 Outbreak, and It Could Now Constrict Containers at World's Busiest Port

The commodity markets came under pressure to start the week as traders tried to shed risk over shipping concerns in China as COVID-19 concerns caused officials to shut down transportation amid a two-pronged lockdown.