Equipment sales falter as farm income slows, tariffs a concern, say regional Feds
Farm equipment sales are slowing alongside the downturn in farm income, creating a headwind to overall U.S. investment activity, said the Beige Book, a summary of economic conditions in Federal Reserve Bank districts. In discussing agriculture, the St. Louis Fed said some businesses were building inventory in anticipation of potential tariffs on imported goods.
Negotiate before applying tariffs, Farm Bureau says
The largest U.S. farm group would prefer negotiation, rather than a salvo of tariffs, as the first step in resolving U.S. disputes with other nations, said the American Farm Bureau Federation’s chief economist on Wednesday. “I think it’s important, when we’re talking about friends like Mexico and Canada, that we talk first,” said economist Roger Cryan. “And think about shooting later.”
‘Tariff man’ Trump picks trade hawk to run USTR
President-elect Donald Trump, who declared, "I am a tariff man," in 2018, selected Jamieson Greer, an important figure in the Sino-U.S. trade war, to serve as U.S. trade representative (USTR) in his second term. Trump announced the choice during a string of days in which he threatened high import duties on a dozen countries, including Canada, Mexico, China, India, Brazil, and South Africa.
Voracious U.S. demand means biggest food and ag trade deficit ever
Americans are consuming ever-larger amounts of imported fruits, vegetables, wine, alcohol, coffee, and beef, an appetite that will drive the food and ag trade deficit to a record $45.5 billion this fiscal year, estimated the Agriculture Department on Tuesday. Imports would be a sizzling $9.3 billion larger than in just-ended fiscal 2024, while food and ag exports decline for the third year in a row due to lower commodity prices.
Rural landslide is part of ‘historic realignment’ in Trump victory
President Trump rolled up 63 percent of the vote in rural America, a larger margin than in 2016, on the way to winning a second term in the White House on Tuesday. Farm groups offered to work with him on Wednesday to pass the new farm bill, now 14 months overdue, and to bring high costs under control.
Trump reminds farmers of trade war aid; Harris would fix ag labor shortages
Former president Donald Trump said in a questionnaire released on Thursday that he would use “every tool at my disposal,” including tariffs, to expand U.S. food and ag exports if he is re-elected. Vice President Kamala Harris would not tolerate unfair trade practices from China or other competitors, said senior aides to the Democratic nominee.
Trump puts agriculture on list of potential ‘wealth fund’ investments
In a speech on Thursday, former president Donald Trump included “new and modern agricultural techniques” on a crowded list of potential investments from a yet-to-be-created wealth fund that might be bankrolled by import tariffs.
Republicans back massive deportations, call for tariffs to protect farmers
Republican delegates approved a Trump-backed party platform on Monday that endorses "baseline tariffs" on imports and more stringent trade relations with China in the name of protecting U.S. farmers, workers, and industries from unfair trade. The 16-page document also called for "the largest deportation operation in American history," aimed at undocumented immigrants.
U.S. sugar import rules need an update, says GAO
The government should replace outdated sugar import rules that guarantee higher revenue to domestic growers and drive up food costs, said the Government Accountability Office on Tuesday. “The program creates higher sugar prices, which cost consumers more than producers benefit, at an annual cost to the economy of around $1 billion,” it said.
WTO backs U.S. in challenge of Chinese trade war tariffs
China wrongly imposed retaliatory tariffs against U.S. products including pork, wine, and fruits and nuts in response to Trump-era tariffs on aluminum and steel imports, said a WTO dispute panel on Wednesday. The trade war levies were an additional 25 percent on pork and an additional 15 percent on fruits and derived products.
U.S. files new challenge to Canada’s dairy quotas
Accusing Canada of backsliding on its commitments, the United States requested consultations on Wednesday with its northern neighbor over dairy import quotas that limit American access to the Canadian market. U.S. trade representative Katherine Tai said Canada has expanded its restrictions despite being the loser in a USMCA trade ruling.
Apple industry asks Biden to remove tariffs on Chinese goods
Exports of U.S. apples "have taken a big hit in recent years," with the Sino-U.S. trade war as a leading reason, said the U.S. Apple Association on Thursday. The trade group called on the Biden administration to remove U.S. tariffs on Chinese products so that China would eliminate its retaliatory tariffs on U.S. goods that include apples.
Trade war price tag: $27 billion in lost ag export sales
China accounted for 95 percent of the $27 billion in U.S. farm export sales that were lost in 2018 and 2019 as a result of the trade war begun by President Trump, said a USDA report. Sales to China rebounded after the "phase one" trade agreement, but U.S. market share has remained lower than before the tit-for-tat tariffs.
Trade agency approves tariffs on imported phosphate fertilizer
U.S. fertilizer companies are "materially injured" by imports of subsidized phosphate fertilizer from Russia and Morocco, said the U.S. International Trade Commission on Thursday, so it approved, on a 4-1 vote, the imposition of countervailing duties on the imports.
China gets to two-thirds of ‘phase one’
China failed to meet its "phase one" target for imports of U.S. food, agriculture, and seafood products despite a surge in purchases that began late last summer, said the Peterson Institute for International Economics on Thursday.
Tariff-rate quotas are more likely to stay than be negotiated away
The Uruguay Round of trade negotiations, concluded in 1994, created tariff-rate quotas for agriculture with the expectation that they would be a stepping stone to freer trade. Instead, most of those TRQs are still in place and new WTO members have added 43 more, says a report by three USDA researchers.
First USMCA challenge is over dairy quotas
The Trump administration said it was challenging Canadian quotas on dairy imports as unfair to U.S. milk producers. The challenge, announced on Wednesday, was the first under the United States-Mexico-Canada free trade agreement.
Biden: Fast on broadband, slow on China
President-elect Joe Biden supports greater broadband access and more funding for rural healthcare, and says he will not immediately remove President Trump's tariffs on Chinese products, according to a column in the New York Times on Wednesday.