We saw more signal and less noise this week on the matter of U.S. trade relations, as the White House began talks with key U.S. trading partners to avert full-on conflicts in the coming months.
In the case of one of our major markets, Japan, a delegation arrived this week from Tokyo to negotiate a possible deal to lower reciprocal tariffs that were to be implemented earlier this month, but that were suspended until early July. Meanwhile, Italian Prime Minister Giorgia Meloni also came to Washington this week to spearhead an effort to smooth relations between the U.S. and the European Union. Afterward, President Trump expressed confidence that the U.S. and the 27 EU nations could reach an accord. And South Korea’s finance minister is expected in Washington next week for talks on bilateral trade.
We continue to support these talks, and also this week, co-signed a letter, with 30 other agriculture and food organizations, to the Republican and Democratic leaders of the Senate Finance Committee and House Ways and Means Committee, asking lawmakers to support the U.S. membership in the World Trade Organization. The letter notes that while the WTO is not without its flaws, it is foundational to our existing trading system and includes rules and principles that are critical to the food sector.
Trump Administration Raises Fees on Chinese Ships
The U.S. Trade Representative’s office released a plan yesterday to increase fees on Chinese ships based on vessel capacity, in an effort to bolster the domestic shipping sector. The fee structure is not as high as initially feared, but concerns about added costs led NMPF and USDEC to file comments in March explaining the impact that additional fees would have on dairy exporters. We will continue to highlight how these added costs are a potential impediment to reaching foreign customers. Additional information can be found in Annex I of the USTR Federal Register notice.
The USDA announced this week that it is revamping and rebranding the Biden-era Partnerships for Climate-Smart Commodities program into an initiative dubbed the Advancing Markets for Producers program, but we expect this new effort will still provide resources to farmers who previously committed to climate-friendly farming practices.
Agriculture Secretary Brooke Rollins said that under the previous program, USDA’s contracts with producers were “overburdened by red tape, had ambiguous goals, and required complex reporting.” The new effort will change aspects of the Biden program to align the initiative with current Trump administration priorities.
The review of existing projects will emphasize three priorities:
- A minimum of 65% of federal funds must go to producers;
- Grant recipients must have enrolled at least one producer as of 12/31/2024;
- Grant recipients must have made a payment to at least one producer as of 12/31/2024.
USDA will contact current partners individually to provide information about their future participation. USDA will honor all eligible expenses incurred prior to April 13, 2025. This effort will utilize existing funding, with no new funding made available for these partnerships.
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