President Donald Trump’s latest deadline for imposing new tariffs on Canada, Mexico and China looms Tuesday, while on Capitol Hill negotiators remain deadlocked over plans to avoid a government shutdown after March 14.
Trump last week reafffirmed that he intends to press ahead with new tariffs on Mexico and Canada, as well as another 10% duty imports from China. But his Treasury Secretary Scott Bessent seemed to signal a potential off-ramp for the U.S.’ neighbors Friday afternoon.
“One very interesting proposal that the Mexican government has made is perhaps matching the U.S. on our China tariffs,” Bessent told Bloomberg. “I think it would be a nice gesture if the Canadians did it also.”
On Sunday, Commerce Secretary Howard Lutnick reaffirmed that tariffs on Mexico and Canada would be going ahead but suggested that the rates may differ from the 25% duties – reduced to 10% on Canadian energy products – initially planned.
"That is a fluid situation," Lutnick said on Fox News. “There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we're going to leave that for the president and his team to negotiate."
Officials from both countries met with senior Trump trade officials, including Lutnick, last week in an attempt to put off or avert the new duties. Mexico also sought to appease the U.S. by extraditing 29 drug suspects, including leaders of the high-profile Zetas cartel and a longtime leader of the U.S. Drug Enforcement Administration’s most-wanted list.
Mexico President Claudia Sheinbaum said last week that she was optimistic about securing a deal.
Some GOP lawmakers are also rooting for a last-minute agreement. Sen. Ted Cruz, R-Texas, told Politico on Thursday that the Mexico and Canada tariffs could hobble the economy in his state. Sen. Rand Paul, Ky., has also been a vocal opponent of the duties and Sens. Susan Collins of Maine and Chuck Grassley of Iowa have also expressed reservations about the economic effects.
Beijing’s pulled some punches in its response to the 10% duties Trump imposed last month – sparing agricultural commodities, for one. But China’s Ministry of Commerce on Friday pledged additional countermeasures if the U.S. goes ahead with another tariff hike.
Tuesday night, Trump will give the first state of the union address of his second term, and tariffs and trade policy are likely to be a major theme. The speech also will come amid the mass firings and funding freezes that have roiled many departments and agencies, including USDA.
Trump’s trade policy and government downsizing are also likely to be major topics of discussion in Denver, where the grain, oilseed, sorghum and farm equipment industries are meeting for the annual Commodity Classic. Agriculture Secretary Brooke Rollins, who has promised to compensate farmers for the impact of new trade wars, addresses the convention Sunday afternoon.
Democrats demand assurances on spending
Meanwhile on Capitol Hill, it’s far from clear how lawmakers are going to avoid a government shutdown when the continuing resolution that’s been funding the government since December expires March 14.
Trump has thrown his support behind passing another CR that would fund the government to the end of fiscal 2025 on Sept. 30. Republicans also want to put into law the spending reductions that Elon Musk’s Department of Government Efficiency initiative has been making by canceling government contracts and programs.
House Speaker Mike Johnson, R-La., said Sunday on NBC's Meet the Press alleged that "Democrats have shown no interest in finding a reasonable solution" to the funding impasse.
"We're looking to pass a clean CR to freeze funding at current levels to make sure that the government can stay open while we begin to incorporate all these savings that we're finding through the DOGE effort and these other sources of revenue that President Trump's policies" will create, he said.
But Democrats, who believe DOGE is illegally ending programs and reducing spending without congressional approval, are demanding assurances that Trump commit to honoring the funding levels in any spending legislation Congress passes. Republicans need Democratic help to get the 60 votes necessary to move any funding measures through the Senate.
“We are asking for our Republican colleagues to assure us and to give us the ability to know when we pass bills, they are going to be followed by the White House,” said Washington Sen. Patty Murray, the top Democrat on the Senate Appropriations Committee.
Her counterpart on the House Appropriations Committee, Connecticut Democrat Rosa DeLauro, said she wants to pass FY25 spending bills that will ensure funding for agencies such as the National Institutes of Health, which has been hit by DOGE-led funding cuts and layoffs.
“We have to have full-year bills. That is what our job is, and that is what I am focused on,” said DeLauro. “I do not want a government shutdown. I don't support a government shutdown. There are a number of people, particularly on the other side of the aisle, who support a government shutdown.”
Republicans are unwilling to give Democrats the assurances they want that Trump will honor congressional funding levels.
North Dakota GOP Sen. John Hoeven, who chairs the Senate Agriculture Appropriations Subcommittee, said Republicans generally agree with the mission of DOGE. But he thinks there needs to be more coordination with congressional Republicans so they can defend DOGE’s work to constituents.
Hoeven also said it’s important for congressional appropriators to also coordinate with DOGE as Congress puts together spending bills.
Here is a list of agriculture- or rural-related events scheduled for this week in Washington and elsewhere (all times EST):
Monday, March 3
Commodity Classic, through Tuesday, Denver.
National Association of Counties legislative conference, through Tuesday, Washington Hilton.
Tuesday, March 4
9:30 a.m. – International Food Policy Research Institute webinar, “Biofuels and the Global Vegetable Oil Market.”
10 a.m. – House Agriculture subcommittee hearing on the livestock industry, 1300 Longworth.
9 p.m. – President Donald Trump delivers his state of the union address.
Wednesday, March 5
10 a.m. – American Enterprise Institute forum with House Ways and Means Committee Chairman Jason Smith, R-Mo.
1:30 p.m. – Brookings Institution forum, “USMCA Forward 2025 launch: Navigating North American trade amid global changes.”
2 p.m. – House Energy and Commerce subcommittee hearing, "Fixing Biden’s Broadband Blunder," 2123 Rayburn.
Thursday, March 6
10 a.m. – Senate Health, Education, Labor and Pensions Committee hearing on the nomination of Martin Makary to be commissioner of the Food and Drug Administration, 562 Dirksen.
11 a.m. – Senate Agriculture subcommittee hearing on the Fix Our Forests Act, 328A Russell.
Friday, March 7
9:30 a.m. – Washington International Trade Association forum, “2025 Congressional Trade Agenda.”
For more news, go to Agri-Pulse.com.
