TRADE UPDATE

Food & Agriculture
June 3, 2025

By Kristy Goodfellow, Vice President of Trade and Industry Affairs, Ellen McDonough, CRA Trade Intern, and Aliza Hart, CRA Communications Intern

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HIGHLIGHTS

  • Tariffs and Bilateral Negotiations: On May 28, the U.S. Court of International Trade (CIT) blocked President Donald Trump’s tariffs imposed using the authorities under the International Emergency Economic Powers Act of 1977 (IEEPA). The future of bilateral negotiations associated with “reciprocal” tariffs is unclear.
  • USDA: Agriculture Secretary Brooke Rollins touted improved market access for U.S. dairy products to Costa Rica after the country registered and approved the first American dairy cooperative in a new, streamlined process for facility registration.
  • Trade Remedies:
    • The Lysine Fair Trade Coalition filed a new antidumping (AD) and countervailing duty (CVD) petition with the U.S. International Trade Administration (ITA) on animal feed-grade L-lysine from China.
    • The U.S. ITA announced preliminary countervailing duties of 3.29% to 3.49% in an investigation of erythritol (a zero-calorie sweetener) from China.
  • Trade Policy: The International Food Policy Research Institute (IFPRI) released its 2025 Global Food Policy Report, which looks back at 50 years of policies and policy research, highlights lessons learned, and identifies policy challenges and opportunities ahead.

“An unlimited delegation of tariff authority would constitute an improper abdication of legislative power to another branch of government.”

—U.S. Court of International Trade in a May 28 ruling

Tariffs and Bilateral Negotiations

US COURT BLOCKS TRUMP TARIFFS

  • On May 28, the U.S. Court of International Trade (CIT) blocked President Donald Trump’s tariffs imposed using the authorities granted under the International Emergency Economic Powers Act of 1977 (IEEPA).
  • On May 29, the Court of Appeals for the Federal Circuit (CAFC) stayed the decision, leaving the tariffs in place during a CAFC review.
  • Many speculate that the Supreme Court will have to deliver a final ruling on the limit of executive trade power.
  • IEEPA had been invoked in Trump’s “reciprocal” tariffs, which the administration argued were applied in response to the U.S. trade deficit.
  • IEEPA was also invoked in February 2025, when the Administration imposed tariffs on Canada, Mexico, and China, which the Administration argued was because of the influx of illegal drugs and immigration.
  • The future of bilateral negotiations associated with “reciprocal” tariffs is unclear, but is also likely to factor in the increasing number of tariffs being added under Section 232 and Section 301 authorities.

USDA

SECRETARY ROLLINS TOUTS TRADE WIN FOR US DAIRY

  • On May 22, Costa Rica’s National Animal Health Service (SENASA) registered and approved the first United States dairy cooperative in a new streamlined facilities registration process for U.S. dairy exports.
  • In a USDA press release, Agriculture Secretary Brooke Rollins said “Under President Trump’s leadership, USDA is putting Farmers First” and notes increased access to this $130 million market.
  • According to a USDA Foreign Agricultural Service GAIN report, the new Costa Rican system replaces a more lengthy and complex registration and approval process for United States dairy exports.
  • Earlier this year, dairy tariffs were eliminated for countries under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), making this an important step toward further bilateral engagement in United States trade relations.

Trade Remedies

LYSINE FROM CHINA PETITION FILED

  • On May 28, the Lysine Fair Trade Coalition — composed of Archer Daniels Midland Co., CJ Bio America, Inc., and Evonik Corporation — filed a new antidumping (AD) and countervailing duty (CVD) petition on lysine from China.
  • The investigation covers animal feed-grade lysine, which is an essential amino acid that helps in the processing of protein.
  • According to the petitioners, the U.S. imported nearly 78,000 metric tons of lysine from China worth almost $96 million in 2024.
  • Dumping investigations of lysine from China are also underway in the European Union and Brazil. The preliminary antidumping duties in the EU ranged from 58.3% to 84.8%. A decision on Brazil’s preliminary duties was delayed in April and is expected soon.

ERYTHRITOL FROM CHINA ANTIDUMPING INVESTIGATION

  • The U.S. International Trade Administration (ITA) announced preliminary countervailing duties in an investigation of erythritol from China.
  • Duties range from 3.29% to 3.49%.
  • U.S. ITA’s dumping investigation is happening in parallel to this subsidy investigation, the results of which have not been announced.
  • The ITA final determination is scheduled for Sept. 24, 2025, and the International Trade Commission final determination of injury is scheduled for Nov. 10, 2025.
  • The case petitioner — Cargill — describes its erythritol product as a “zero-calorie bulk sweetener that looks and tastes like sugar.”

Trade Policy

2025 IFPRI GLOBAL FOOD POLICY REPORT

  • The International Food Policy Research Institute (IFPRI) released its 2025 Global Food Policy Report, which looks back at 50 years of policies and policy research, highlights lessons learned, and identifies policy challenges and opportunities ahead.
  • The report includes sections on sustainability and food systems, supporting farmers, transforming lives and livelihoods, effecting change, and regional development.
  • In a chapter on trade, the report highlights that agrifood trade has tripled since 1975 due to the rise of processed foods and the growing role of developing countries, which now account for about 30% of both global imports and exports.
  • Looking ahead, the report emphasizes the “development of new technologies that both reduce emission intensities and raise productivity” as the key to achieving sustainable food systems, rather than repurposing trade policies.
From IFPRI on LinkedIn