TRADE UPDATE

Food & Agriculture
March 11, 2025

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

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HIGHLIGHTS

  • Trump Administration:
    • In a joint address to Congress, President Donald Trump said the new trade policy will result in American farmers “selling into our home markets,” a message consistent with a social media post earlier in the week.
    • Trump’s 2025 Trade Policy Agenda emphasizes trade policy that supports a “production economy.”
  • Tariffs:
    • On March 6, Trump temporarily removed tariffs that had been imposed two days earlier, but only for products meeting the U.S.-Mexico-Canada Agreement (USMCA) rules of origin requirements.
    • Section 232 steel and aluminum tariffs go into effect on Wednesday (so far without exclusions) and the Administration initiated a new Section 232 investigation into the wood product industry.
    • The comment period on Unfair and Non-Reciprocal Foreign Trade Practices closes Tuesday, March 11, tariffs Trump has stated will go into effect on April 2.
    • Canada initiated a WTO dispute against the United States in response to new tariffs.
    • China imposed retaliatory tariffs on many agricultural products from Canada in response to Canada imposing tariffs in October 2024 on electric vehicles and steel and aluminum products from China.
  • Africa: A Congressional Research Service report reviews the African Growth and Opportunity Act (AGOA). The report notes that U.S. AGOA imports are down and identifies issues for Congress to address.
  • Rice: The U.S. International Trade Commission (USITC) published a report, Rice: Global Competitiveness and Impacts on Trade and the U.S. Industry. An update to the report, originally published in 2015, was requested in 2024 by the House Committee on Ways and Means.

“Our new trade policy will also be great for the American farmer – I love the farmer – who will now be selling into the home market, the U.S.A., because nobody is going to be able to compete with you. Because those goods that come in from other countries and companies are really, really in a bad position in so many different ways. They are uninspected, they may be very dirty and disgusting when they come in, and they hurt our American farmer.”

—President Donald J. Trump, Joint Address to Congress

Trump Administration

TRUMP COMMENTS DURING JOINT ADDRESS

  • In a joint address to Congress on March 5, President Trump defended his 25% tariffs on Mexico and Canada, stating that “other countries have used tariffs against us for decades, and now it’s our turn to start using them against other countries.”
  • While Trump admitted that these tariffs would cause economic disturbance, he suggested “it won’t be much.”
  • Trump named the European Union, China, Brazil, India, Mexico, and Canada as nations charging the United States “tremendously higher tariffs than we charge them” and stated that reciprocal tariffs will begin on April 2.
  • Trump said the new trade policy will result in American farmers “selling into our home markets.” This message was similar to a social media post earlier in the week, which said, “To the Great Farmers of the United States: Get ready to start making a lot of agricultural products be sold INSIDE of the United States. Tariffs will go on external product on April 2nd. Have fun!”
Photo: White House

USTR ANNOUNCES 2025 TRADE POLICY AGENDA

  • U.S. Trade Representative Jamieson Greer delivered Trump’s 2025 Trade Policy Agenda, 2024 Annual Report, and World Trade Organization at Thirty Report to Congress on March 3.
  • The agenda emphasizes a trade policy that supports a production economy to create jobs, increase wages, boost innovation, and strengthen the defense industrial base.
  • Through reviewing and identifying unfair and non-reciprocal trade practices, the report states the U.S. can leverage to open new markets for U.S. exports, reshore production, and rebalance trade relations with tariffs and other tools.
  • The agenda declares “the trade challenges facing our country will ‘be annihilated’ because from this moment on, America’s decline is over.”
  • The 2024 annual report highlights the accomplishments of the Office of the USTR, specifically noting achievements in opening export markets for American agriculture.
  • The report also details 2024 trade negotiations that included agriculture, and it outlines agreement enforcement and monitoring efforts in support of American agriculture.
  • The WTO at Thirty Report criticizes the WTO, detailing its shortcomings in concluding any market liberalizing agreements and reducing disparities and imbalances, among other challenges.
  • The report also highlights how China’s non-market practices are incompatible with the WTO’s principles, yet the WTO hasn’t been able to successfully address these issues with China.
  • The assessment states that the U.S. “will continue to look for new avenues to make the WTO more relevant,” but “with an appreciation that meaningful reform will require participation by other members.”

Tariffs

STATUS OF NEW TARIFFS

  • On March 4, 25% tariffs went into effect on most products from Canada and Mexico, along with the additional 10% tariffs on China.
  • On March 6, Trump temporarily removed tariffs for products from Canada and Mexico that meet the U.S.-Mexico-Canada Agreement (USMCA) rules of origin requirements, which a White House official said account for about 38% of imports from Canada and Mexico.
  • More tariff whiplash is ahead as the Administration is scheduled to impose steel and aluminum Section 232 tariffs on Wednesday (so far without exclusions). The Administration has also initiated a new Section 232 investigation into the wood product industry.
  • The comment period closes Tuesday, March 11 on Unfair and Non-Reciprocal Foreign Trade Practices. Trump has made several public comments about imposing tariffs (the “big one”) on April 2.
  • Canada initiated a WTO dispute complaint on March 5 regarding the U.S. tariff measures.
  • China revised their Feb. 4 WTO dispute consultations request on March 5 to reflect the increased U.S. tariffs to 20%, calling them protectionist and discriminatory.
  • On March 8, China imposed retaliatory tariffs on many agricultural products from Canada in response to Canada imposing tariffs in Oct. 2024 on electric vehicles and steel and aluminum products from China.

Africa

AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA) RENEWAL

  • The Congressional Research Service (CRS) released its annual report reviewing the African Growth and Opportunity Act (AGOA), which is set to expire in September 2025 unless Congress reauthorizes the program.
  • Under AGOA, 32 countries in Sub-Saharan Africa are currently eligible to receive duty-free market access to the United States.
  • In 2024, U.S. AGOA imports totaled $8 billion, down 13% from $9.3 billion in 2023, with the top importing country being South Africa.
  • AGOA directs the President to provide Trade Capacity-Building (TCB) to AGOA beneficiaries, administered by the USAID. With foreign assistance programs under a 90-day pause, it remains to be seen what TCB or related programs, if any, may resume following reviews.
  • The Trump Administration has not expressed its views on AGOA reauthorization, and USTR Jamieson Greer stated that he will consult with Congress on AGOA reauthorization based in part on Trump’s orders for a trade policy review.
  • The report highlights that Congress should consider assessing the effects of potential new trade negotiations in the region, how AGOA could play a role in boosting supply chain resiliency in critical sectors, and how third-party agreements may disadvantage some U.S. exporters.

INTERNATIONAL TRADE COMMISSION

RICE REPORT PUBLISHED

  • The U.S. International Trade Commission (USITC) published a report, Rice: Global Competitiveness and Impacts on Trade and the U.S. Industry. An update to the report, first released in 2015, was requested in 2024 by the House Committee on Ways and Means.
  • The main findings of the report were:
    • A small share of rice production is traded internationally.
    • Many governments intervened in the rice industry to promote domestic production and food security.
    • Major fluctuations in global rice prices occurred between 2018 and 2023.
    • Climate- and weather-related disruptions have strong effects on rice production.
    • Production costs vary widely among major rice-producing countries.
    • Rice consumption patterns are changing.
    • Other countries’ import policies can impact the export competitiveness of the U.S. rice industry.