TRADE UPDATE

Food & Agriculture
March 18, 2025

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

SUBSCRIBE

HIGHLIGHTS

  • Tariffs: Section 232 Steel and Aluminum tariffs went into effect on March 12 without exemptions.
    • The EU and Canada announced retaliation going beyond steel and aluminum products and totaling €26 billion and CA$29.8 billion, respectively.
    • Democratic members of the House Committee on Agriculture sent a letter to Commerce Secretary Howard Lutnick urging him to “pursue trade negotiations through established channels and abandon the chaotic approach to tariffs that the administration has employed.”
    • Reps. Don Beyer (D-VA) and Suzan DelBene (D-WA) introduced the Congressional Trade Authority Act, which requires congressional approval for Section 232 actions.
  • International Organizations: The Organization for Economic Cooperation and Development published a policy brief — Enabling Trust in Food Labels for Improved Environmental Outcomes — which emphasizes the role in a wider policy package labeling could play in influencing consumer choices towards more sustainable food products.
  • Trade: The World Trade Organization Goods Barometer notes steady trade in the fourth quarter of 2024 and continued growth in the first months of 2025. The report notes “increased trade policy uncertainty and the prospect of new tariffs could weigh on trade in the medium term.”

“These proposed tariffs pose significant threats to businesses and employees on both sides of the Atlantic and will harm farmers, waitstaff, bartenders, truck drivers and retail workers while also depriving consumers of products they know and enjoy. We urge the U.S. and EU to refrain from imposing these tariffs and to engage in negotiations to resolve the underlying trade issues on steel and aluminum.”

—Toasts Not Tariffs Coalition Statement from March 13, 2025

Tariffs

STEEL AND ALUMINUM TARIFFS

  • Section 232 Steel and Aluminum tariffs went into effect on March 12 without exemptions. 
  • EU Response:
    • On March 11, the EU responded with new countermeasures on U.S. imports into the EU worth up to €26 billion, including steel and aluminum products, textiles, home appliances, and agricultural products.
    • The existing 2018 and 2020 countermeasures will lapse on April 1.
    • The package of new countermeasures on U.S. exports will come into force by mid-April, following stakeholder consultations.
  • Canada Response:
    • On March 12, Canada responded with 25% reciprocal tariffs totaling CA$29.8 billion (about $20 billion U.S. dollars) on a list of steel products worth CA$12.6 billion, aluminum products worth CA$3 billion, and additional imports worth CA$14.2 billion.
  • Industry Response:
    • U.S. wine and spirits are targeted in the EU’s retaliation list. In a statement, Chris Swonger, president and CEO of the Distilled Spirits Council of the United States (DISCUS), said the EU’s reimposition of “debilitating” 50% tariffs on American whiskey “will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries.”
    • The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF), whose products are affected by the retaliation, released a joint statement urging intensified negotiations to restore trade flows. The statement notes that exports are fundamental to the health of the U.S. dairy industry, as one out of six days’ worth of milk production is destined for international consumers.
  • Congressional Response:
    • Reps. Don Beyer (D-VA) and Suzan DelBene (D-WA) introduced the Congressional Trade Authority Act, which would require Congressional approval for Section 232 actions.
    • Democratic members of the House Committee on Agriculture sent a letter to Commerce Secretary Howard Lutnick expressing concerns over the “chaotic approach that the Administration has taken toward trade policy.”
    • The letter states, “The on and off approach that the Administration has taken toward implementing and removing tariffs creates uncertainty for farmers, increases prices for consumers and leads to volatility in the marketplace.  None of these outcomes benefit farm country.”
    • The Representatives urge Lutnick to “pursue trade negotiations through established channels and abandon the chaotic approach to tariffs that the administration has employed.”

International Organizations

OECD REPORT ON FOOD LABELS AND ENVIRONMENTAL OUTCOMES

  • The Organization for Economic Cooperation and Development published a policy brief — Enabling Trust in Food Labels for Improved Environmental Outcomes.
  • The brief acknowledges the lack of harmonization concerning which environmental outcomes to measure and the lack of consistent impact assessments.
  • However, the report optimistically notes that labels could play a role in a wider policy package aimed at influencing consumer choices towards more sustainable food products.

Trade

WTO GOODS BAROMETER

  • The World Trade Organization Goods Barometer reported steady trade in the fourth quarter of 2024 and continued growth in the first months of 2025.
  • The report notes “increased trade policy uncertainty and the prospect of new tariffs could weigh on trade in the medium term.”
  • The report notes European trade was weaker than anticipated, while Asian exports and North American imports exceeded expectations.
Source: https://www.wto.org/english/news_e/news25_e/wtoi_12mar25_e.htm