TRADE UPDATE

Food & Agriculture
Feb. 11, 2025

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Sophia Vaccaro, CRA Trade Intern, and Charlotte McCourt, CRA Communications Intern

HIGHLIGHTS

• Tariffs:
  • U.S. tariffs on Canada and Mexico are delayed, but 10% tariffs on China have gone into effect. China is retaliating on certain manufactured and energy products, including agricultural machinery, and has taken the initial steps in challenging the measure at the World Trade Organization (WTO).
  • Meanwhile, attention is now focused on President Donald Trump’s Friday comments on reciprocal tariffs to be announced later this week.
• US-Mexico: Mexico revoked two measures that restrict genetically engineered corn imports. These measures were successfully challenged by the United States in a U.S.-Mexico-Canada Agreement dispute.
• Trump Administration: U.S. Trade Representative Nominee Jamieson Greer used his Senate Finance Committee nomination hearings to reflect on his belief that America should be a “country of producers,” with opportunities for Americans to work in high-paying jobs, producing goods and services sold domestically and abroad.
• Congress: Senate Ag Committee members and producers highlighted the harmful impact tariffs can have on agriculture at a recent committee hearing. Participants also emphasized the need for new “fair trade” deals.
• Food Aid: Secretary of State Marco Rubio issued a waiver allowing humanitarian assistance to continue flowing amid confusion over the state of U.S. international food aid.
• Trade Promotion: USDA sent its first-ever trade mission to Bangkok, Thailand, with 40 businesses and trade organizations taking part in site visits and trade briefings to learn more about Thailand’s market conditions.

“What I’m asking about is an example for the idea that the president has made number one on the trade policy list — a universal tariff … I’d like to see some kind of lodestar here that shows us why we ought to go in the direction the president’s going, because I haven’t seen one.”

—Senate Finance Committee Ranking Member Ron Wyden (D-OR) during Jamieson Greer’s nomination hearing to be the next U.S. Trade Representative

Tariffs

QUICKLY EVOLVING TRUMP TARIFFS

• President Donald Trump’s planned 25% tariffs on Canada and Mexico have been delayed, but 10% duties on China went into place starting on Feb. 4. 
  • China is retaliating on certain manufactured and energy products, including agricultural machinery, and has taken the initial steps in challenging the measure. at the World Trade Organization (WTO) by requesting bilateral consultations.
  • The Trump Administration reversed its initial plan to require the additional tariffs be added to de minimis shipments, or shipments worth less than $800.
• On Friday, Trump publicly stated that he would announce reciprocal tariffs on U.S. trading partners next week.
• On Sunday, Trump told reporters he plans to announce 25% tariffs on imported steel and aluminum.
  • The “America First Trade Policy” memo calls for a review and recommendations regarding “revisions that may be necessary or appropriate to achieve or maintain the general level of reciprocal and mutually advantageous concession concerning free trade agreement partner countries.”

US-Mexico

MEXICO REVOKES MEASURES RESTRICTING GENETICALLY ENGINEERED (GE) CORN

• The government of Mexico revoked two measures in its 2023 presidential corn decree, which were successfully challenged by the United States in a USMCA dispute.
• The measures banned GE corn in tortillas and mandated the gradual elimination of GE corn in other uses, including food and animal feed.
• The Office of the U.S. Trade Representative welcomed the action, noting it will continue to closely monitor Mexico’s compliance with USMCA commitments, ensuring that U.S. corn growers maintain the market access Mexico agreed to provide in the USMCA.
• In 2024, the United States exported $5.6 billion of corn to Mexico, the largest export market for U.S. corn.

Trump Administration

USTR GREER HEARING

• The Senate Finance Committee’s confirmation hearing for Jamieson Greer, Trump’s United States Trade Representative nominee, was held on Feb. 6.
• In Greer’s opening statement, he reflected on his belief that America should be a “country of producers,” with opportunities for Americans to work in high-paying jobs producing goods and services sold domestically and abroad.
• Several senators noted their concerns about market access for agricultural products. Greer responded by saying that if confirmed, he would pursue new market access for agricultural products, using all tools available.
• As for possible changes to USMCA, Greer said it will be important to look closely at rules of origin requirements from foreign countries of concern.
• Many questions also focused on the Trump Administration’s tariff utilization and its relationship with inflation and the trade deficit.

Congress

SENATE AG HEARING ON AG ECONOMY

• The Senate Agriculture Committee held a hearing on Feb. 5 to gather insights that would inform the policy drafting of the next farm bill.
• Panelists representing U.S. agriculture groups highlighted the harmful impact tariffs can have on agricultural products through decreased export opportunities caused by retaliation. Senators emphasized the need for new “fair trade” deals.
• Outside of trade discussions, panelists and Senators highlighted the need for a robust Farm Bill with stronger crop insurance and improvements in the Title I commodity programs as farmers continue to face high input costs and low commodity prices.
• Participants also discussed issues farmers have been facing related to the White House Office of Management and Budget pause on the disbursement of federal financial assistance.
• The second session of the hearing is scheduled for Feb. 13.

Food Aid

TRUMP FOOD AID

• U.S. food and agricultural products used for foreign food aid programs were threatened by the Trump Administration’s freeze of foreign aid, which was introduced in a Jan. 20 Executive Order.
• Secretary of State Marco Rubio later issued a waiver for “lifesaving humanitarian assistance,” although it has been reported to be unclear if food aid qualifies for the waiver. Over the weekend, Rubio was reported to have authorized shipping that was already in transit.
• In the most recent American notification to the World Trade Organization on annual food aid to least-developed and net food-importing developing countries, the U.S. said it has provided 2.2 million tons of food aid to these countries.
  • Wheat was by far the highest quantity of donations at 1.45 million tons, followed by sorghum at 211,050 tons, and peas and rice at around 130,000 tons.

Trade Promotion

USDA TRADE MISSION

• The USDA has hosted its first-ever trade mission to Bangkok, Thailand, with nearly 40 businesses and trade organizations represented.
• In Bangkok, U.S. agricultural business leaders took part in discussions with potential importers, site visits, and trade briefings to learn more about Thailand’s market conditions.
• In 2023, the United States was the fifth-largest supplier of agricultural products to Thailand, most of which were products used for feed and food manufacturing. Thailand’s large feed and food processing markets, as well as their strong demand for consumer-oriented agricultural products, drove the trade mission.