TRADE UPDATE

Food & Agriculture
April 1, 2025

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

HIGHLIGHTS

• Tariffs:
  • April 2 is “Liberation Day,” when the Trump Administration is expected to announce reciprocal tariffs.
  • Tariffs of 25% on automobiles and auto parts are set to go into effect on April 3 and May 3, respectively. There will be some partial exclusions for USMCA-compliant autos and auto parts.
  • Broad 25% tariffs on countries importing Venezuelan oil are also set to go into effect on April 2.
• Congress:
  • The House Ways and Means Trade Subcommittee recently focused on the need for new trade agreements and current trade issues.
  • The Senate will vote on legislation to undo President Donald Trump’s tariffs on Canadian goods.
• US-China: USTR Jamieson Greer and Chinese Vice Premier He Lifeng met virtually to exchange views on the U.S.-China economic and trade relationship.
• Mexico: Mexico enacted a constitutional amendment banning the domestic cultivation of genetically modified corn.
• North America: Registration is open for Cultivating Competitiveness: Positioning North America as a Strategic Agricultural Bloc, a CRA-sponsored event hosted by the Center for Strategic and International Studies on April 10.

“Since our last Trade Subcommittee hearing only a month ago, President Trump has recklessly thrown around tariff authority against our closest trading partners. Congress delegated national security and trade authority to prior presidents under the belief that they could be trusted with that power. But in less than 70 days, we have seen how President Trump distorts and weaponizes that delegated authority to serve his own interests, settle old scores, and most alarming of all, to destabilize America’s economic and security standing in the world.”

—Rep. Linda Sánchez (D-CA), Ranking Member of the House Ways and Means Trade Subcommittee, during a March 25 hearing on American trade negotiation priorities

Tariffs

AUTO TARIFFS ANNOUNCED

• On March 26, President Donald Trump announced 25% tariffs on automobiles and auto parts.
• Automobile tariffs are set to go into effect April 3, and auto parts tariffs are set to go into effect May 3.
• Automobile imports that qualify for USMCA preferential tariffs may reduce their tariff liability to the value of non-U.S. content by submitting appropriate documentation to the Commerce Department.
• Imported auto parts that qualify for UMSCA preferential tariffs will remain tariff-free until Commerce and Customs and Border Protection (CBP) establish a process to apply the tariff to the value of their non-U.S. content.
• Within 90 days (June 24), Commerce will establish a process for including additional auto parts. Inclusion requests can be made by a domestic auto or auto part producer of an industry association.
• The United States imported $214 billion of passenger cars in 2024, according to Commerce Department data.

TARIFFS ON IMPORTERS OF VENEZUELAN OIL

• On March 25, Trump signed an executive order adding 25% tariffs on all goods from any country that imports Venezuelan oil, whether directly or indirectly. The tariffs are set to go into effect on April 2.  
• The tariffs will remain in effect for one year after the last shipment, or earlier if determined by the Commerce Department, in consultation with the Departments of State, Treasury, Homeland Security, and Office of the U.S. Trade Representative.
• The Commerce Department is responsible for determining whether a country imported Venezuelan oil; the department will submit a report in conjunction with the State Department every 180 days to assess the effectiveness of the tariffs.

Congress

HOUSE WAYS AND MEANS TRADE SUBCOMMITTEE HEARING

• On March 25, the House Ways and Means Trade Subcommittee held a hearing on American Trade Negotiation Priorities.
• Witnesses discussed trade issues affecting various industries, including beef, motorcycles, and digital services, highlighting challenges like tariffs, non-tariff barriers, and the need for fair trade practices.
• The hearing also focused on the role of Congress in shaping trade policy, with some representatives calling for more bipartisan involvement to strengthen trade agreements and their legitimacy.
• Representatives highlighted the lack of new U.S. trade agreements in recent years and the need to pursue new deals, as other countries, such as China, have continued to strike new trade pacts.
• There were several mentions of interest in pursuing a comprehensive trade agreement with the UK.

SENATE TO VOTE ON BILL TO UNDO TARIFFS ON CANADA

• Supporters of legislation that would undo Trump’s tariffs on Canadian goods say they expect the measure to be considered this week. According to Sens. Tim Kaine (D-VA), Amy Klobuchar (D-MN), and Mark Warner (D-VA), the bill should receive a vote on April 1.
• The legislation would terminate the national emergency declared by Trump on Feb. 1 to justify his tariffs on Canadian imports under the International Emergency Economic Powers Act (IEEPA).
• Kaine warned that “we must reverse these damaging tariffs before it’s too late,” and Warner called the tariffs on Canada “a self-inflicted wound.”
• According to an analysis from the Yale Budget Lab, the tariffs would cost the average American household $2,000 per year.

US-China

USTR AND CHINA’S VICE PREMIER DISCUSS TRADE RELATIONSHIP

• On March 26, USTR Jamieson Greer and Chinese Vice Premier He Lifeng had a “candid discussion” over video conference to exchange views on the U.S.-China economic and trade relationship.
• According to a USTR readout of the conversation, Greer outlined how President Trump is strengthening trade policy to boost domestic investment and productivity, enhance industrial and technological advantages, defend economic and national security, and benefit American workers and businesses.
• Greer also expressed serious concerns about China’s unfair and anti-competitive trade policies and practices.
• Greer and Lifeng agreed on the importance of maintaining communication in the future.

Mexico

MEXICO ENACTS AMENDMENT ON NATIVE CORN

• The Mexican Government recently enacted a constitutional amendment banning the domestic cultivation of genetically modified corn.
• Genetically modified corn is defined as being derived through “techniques that overcome the natural barriers of reproduction or recombination, such as transgenics.”
• The amendment, enacted March 17, requires other uses of such corn to be evaluated “in terms of legal provisions to be free of threats to the biosafety, health, and biocultural heritage of Mexico and its population.”
• While a de facto ban on GE corn planting has been in place since 2013 due to a court ruling – and effective prohibitions have existed since 1998 – this amendment codifies these restrictions in the constitution.

North America

CSIS NORTH AMERICAN AGRICULTURE EVENT NEXT WEEK

• The Center for Strategic & International Studies (CSIS) is having a day-long event on April 10 — Cultivating Competitiveness: Positioning North America as a Strategic Agricultural Bloc.
• The event will include breakout sessions on the growth in the North American agricultural sector under NAFTA and USMCA, agricultural competitiveness, addressing transportation and logistical challenges, emerging technologies, and agricultural innovation.
• Registration is currently open for the event, which is sponsored by the Corn Refiners Association.