President Donald Trump is announcing new tariffs on U.S. car and truck imports — and they may have implications for agriculture. The announcement of the 25% tariff comes just days before Trump is set to unveil “reciprocal” duties on U.S. trade partners.
Why it matters: Many U.S. vehicle suppliers are also major consumers of U.S. agricultural products. Mexico, the top destination for U.S. ag exports, is the main source of U.S. vehicle imports. Japan, South Korea, Canada and Germany are also major vehicle suppliers.
In a press briefing announcing the vehicle duties, Trump additionally previewed further tariffs on lumber imports that could land April 2. His reciprocal tariffs set for next week will also apply to every country, he said, despite reports that duties could focus on only a small group of U.S. partners. But he stressed he would be “lenient.”
Take note: Explaining why the duties are necessary, Trump suggested one reason for auto tariffs was to pay for his economic agenda. “Basically, I view it as reducing taxes and also reducing debt,” he said.
Consumers would feel shipbuilding proposals in higher produce prices
Recent proposals to revive the U.S. shipbuilding industry would show up in higher consumer prices for food not grown in the U.S., like bananas, an importer warns.
Dole’s chief legal officer, Jared Gale, told officials during the second day of a public hearing on the proposals that produce importers rely on highly streamlined supply chains. Dole imports produce via specially refrigerated ships that are not easy to come by, he said. Those vessels make multiple stops at many small U.S. ports where the company has negotiated special arrangements to expedite unloading.
Gale said a new proposed million-dollar port fee on Chinese-made vessels would send shipping costs soaring for importers.
“The proposed fees will cost Dole more than two times the total cost of running our entire U.S. fleet,” Gale said. “All Americans will immediately feel the significant price increase triggered by these fees, along with bread, eggs and milk.
USDA advises energy awardees on project fixes
USDA is giving awardees of three clean energy programs 30 days to “voluntarily propose” changes to align their projects more closely with Trump’s energy and DEI directives.
A notice sent by the agency to grant recipients and obtained by Agri-Pulse suggests changes to their grant proposals could include the removal of diversity, equity, inclusion and accessibility features. It also suggests changes could be for “using more affordable and effective energy sources, including technologies to increase energy production” or storage.
At issue are the Rural Energy for America (REAP), Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs.
Take note: The notice says if awardees do not respond through the designated website, “it will be considered that they do not wish to make changes to their proposals, and disbursements and other actions will resume after 30 days.” Disbursements have been frozen while under USDA review.
Further: "For awardees who respond via this website to confirm no changes, processing on their projects will resume immediately,” the notice says.
Newhouse: Time is ripe for ag labor reform
A senior Republican lawmaker says the political climate is ripe to push for ag labor reform this Congress, because lawmakers are hearing “loudly” from farmers.
“The President’s focus on having a merit-based [immigration] system lines up perfectly with the Farm Workforce Modernization Act that we’ve introduced in past Congresses,” Rep. Dan Newhouse, R-Wash., told Agri-Pulse on the sidelines of an American Business Immigration Coalition event on Capitol Hill.
He said border policies were previously one of the biggest reasons “people could not find it in their hearts to support changes to our visa programs.” Now, however, fewer migrants are crossing the border and there’s a push from the Trump administration to lower grocery prices. Newhouse says that could be addressed by using immigrant labor.
RFK Jr. shows interest in school meals
Health and Human Services Secretary Robert F. Kennedy Jr. has signaled an interest in improving school nutrition programs. Senate Agriculture Committee Chair John Boozman, R-Ark., said Kennedy addressed the subject in a meeting with senators on Wednesday but did not provide specifics.
USDA regulates school meals, along with other federal nutrition programs. During his confirmation hearing, newly confirmed FDA Commissioner Martin Makary said he wanted to look at pilots for healthier school meals and was discussing the idea with administration officials.
Kennedy also told senators he was willing to host a series of “Make America Healthy Again” events across the country to discuss plans and listen to stakeholders, according to Sen. John Hoeven, R-N.D.
Hoeven said he encouraged the secretary to hold events with school nutritionists, farmers and ranchers. “Because if you don’t understand what they have to do on the ground, those nutrition rules won’t work,” Hoeven said following the meeting. “You’ll have a better idea what you can and can’t make work.”
Broadband funding source has good day before high court
Most Supreme Court justices appear to be skeptical of arguments that the Federal Communications Commission’s Universal Service Fund is unconstitutional.
In oral arguments Wednesday, conservative justices Brett Kavanaugh and Amy Coney Barrett posed tough questions to the attorney for Consumers’ Research, who argued the way the $8 billion fund is administered violates the “nondelegation doctrine” prohibiting Congress from ceding legislative powers to agencies.
Justice Sonia Sotomayor said numerous agencies impose fees and levies. “The Federal Housing Finance Agency can levy upon regulated entities an assessment sufficient to pay its reasonable costs and expenses,” she said. “I can go on and on, where agencies are being told [to] levy fees, duties, tariffs.”
The case is likely to be decided by June. Read more at Agri-Pulse.com.
Final word
“The time is upon us to finally take action and solve a very important issue.” — Rep. Dan Newhouse, R-Wash., on the need for ag labor reform.
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