TRADE UPDATE

Food & Agriculture
May 6, 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

  • Tariffs and Bilateral Negotiations: The Trump Administration continues to report on numerous bilateral meetings, negotiations, and agreements intended to address the U.S. reciprocal tariffs.
    • The Office of the U.S. Trade Representative reported on a bilateral meeting with Japan.
  • US-Mexico: Mexico has reached an agreement with the U.S. to resume eradication efforts on the New World Screwworm parasite, following a letter from Agriculture Secretary Brooke Rollins.
  • Trade Remedies: The United States International Trade Commission determined domestic injury from imports of Chinese 2,4-D, a common herbicide used in the United States. The Department of Commerce will now issue antidumping and countervailing duties.
  • India: A new report from the Department of Agriculture’s Economic Research Service finds India’s prices are less dependent on international markets after the implementation of new policies, including trade restrictions.
  • Congress:
    • The Senate narrowly blocked an effort to undo President Donald Trump’s tariffs, with the vote deadlocking at 49-49 and ultimately being rejected.
    • Bicameral legislation was introduced that would codify USDA’s role in negotiating regionalization agreements in order to support agricultural exports in the case of an animal disease outbreak.
  • Trump Administration: Luke Lindberg’s Senate confirmation hearing to be Under Secretary for Trade and Foreign Agricultural Affairs was held on April 29.

“Tariffs are taxes, and the power to tax belongs to Congress — not the president. Our founders were clear: tax policy should never rest in the hands of one person.”

—Sen. Rand Paul (R-KY)

Tariffs and Bilateral Tariff Negotiations

TARIFFS

  • The Trump Administration continues to report on numerous bilateral meetings, negotiations, and agreements intended to address the U.S. reciprocal tariffs.
  • U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick met May 1 with Japanese Economic Revitalization Minister Akazawa Ryosei. According to a USTR press release, the parties “agreed to the immediate start of working-level consultations to build upon the meeting.”
  • While there was some signaling this week of openness to bilateral negotiations between the United States and China, there were no meetings reported.

US-Mexico

SCREWWORM UPDATE

  • On April 30, Agriculture Secretary Brooke Rollins announced Mexico has committed to eliminating restrictions on USDA aircraft and to waiving customs duties on New World Screwworm eradication equipment.
  • This agreement follows Rollins’ April 26 letter to Mexican Secretary of Agriculture Julio Berdegué requesting the removal of these barriers.
  • Rollins threatened to restrict Mexico’s live animal imports if the issue was not resolved by April 30.
  • Due to the agreement, U.S. ports will remain open to livestock imports from Mexico, but if the terms of the agreement are not upheld, the United States has threatened to revisit the option to close ports.

Trade Remedies

USITC DECISION ON HERBICIDE IMPORTS

  • The United States International Trade Commission affirmed that domestic producer Corteva Agriscience was harmed by imports of herbicide 2,4-dichlorophenoxyacetic acid (2,4-D) from China and India.
  • The Department of Commerce determined 2,4-D imports from China and India are sold in the United States at less than fair value and are subsidized by the foreign governments.
  • The Department of Commerce will issue antidumping and countervailing duty orders on imports of this herbicide from China and India.
  • The National Corn Growers Association expressed disappointment with the decision, stating “corn growers should not be forced to rely exclusively on one domestic supplier,” and that the decision “threatens to cause availability shortages that will hamper the work of our farmers.”
  • Corteva originally filed the petition with the USITC on March 14, 2024.

India

USDA REPORT ASSESSES INDIA’S GRAIN PRICES WITH INTERNATIONAL MARKETS

  • A new report from the Department of Agriculture’s Economic Research Service investigates the underlying relationship between international grain and oilseed prices and domestic market prices in India before and after implementing a new policy framework.
  • In response to the COVID-19 pandemic’s food inflation, India distributed rice and wheat to consumers at no cost or reduced cost, limited wheat and rice exports, and increased soybean product imports. These policies remained in effect through April 2024.
  • The study finds India’s domestic rice, wheat, and corn prices shifted to be less dependent on international prices after the new policies were introduced.
  • The study also observed India’s domestic soybean product prices have become more dependent on international soybean prices.

Congress

SENATE BLOCKS BIPARTISAN EFFORT TO UNDO TRUMP TARIFFS

  • The Senate recently rejected an effort to end the national emergency that President Donald Trump declared to impose sweeping tariffs on most U.S. trading partners.
  • The April 30 vote deadlocked at 49-49; three Republicans joined Democrats in favor of the measure.
  • Vice President JD Vance cast the deciding vote to block the measure.
  • Sen. Rand Paul (R-KY), a cosponsor of the resolution who crossed party lines to support it, said “it’s still a debate worth having,” despite the failure of the legislation.

BICAMERAL BILL INTRODUCED FOR SAFE AG EXPORTS

  • On April 29, Reps. Randy Feenstra (R-IA) and Jimmy Panetta (D-CA) and Sens. Roger Wicker (R-MS), Katie Britt (R-AL), Tina Smith (D-MN), and Chris Coons (D-DE) introduced the Safe American Food Exports Act.
  • The legislation would codify USDA’s role in negotiating regionalization agreements that allow livestock, poultry, and other animal products from unaffected areas of the country to continue to be safely exported in the event of an animal disease outbreak.
  • Feenstra stated the bill will “prevent massive trade disruptions and mitigate the negative impacts of animal disease on our farmers,” and Wicker affirmed that regionalization agreements can “ensure America’s agricultural producers are not shut off from the global market.”
  • Supporters of the bill include the United Egg Producers, the North Central Poultry Association, the National Association of State Departments of Agriculture, the National Turkey Federation, and the American Feed Industry Association.

Trump Administration

LUKE LINDBERG SENATE CONFIRMATION HEARING

  • On April 29, the Senate Agriculture Committee held a hearing for Luke Lindberg to be the next USDA Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs
  • Lindberg previously served as the founder and CEO of South Dakota Trade, a public-private partnership addressing international trade in the state.
  • Lindberg has also served as the Chief of Staff and Chief Strategy Officer at the Export-Import Bank of the United States
  • During the hearing, Lindberg discussed his qualifications, the importance of securing the rights of rural Americans, and the importance of addressing the agricultural trade deficit.