Enjoy the weekend because there’s a huge week ahead on the trade front. President Donald Trump will announce his reciprocal tariffs and also make a decision on the scope of existing tariffs on Canada and Mexico.
Meanwhile, U.S. export markets already are scrambling to respond to Trump’s new duties on cars and trucks. Canada’s Prime Minister Mark Carney had some tough words Thursday for the U.S. But he said his government will wait until next week to respond to the vehicle tariffs.
Take note: Carney said the U.S. is “no longer a reliable partner” on trade. He suggested Canada would respond by looking to deepen trade ties with other countries.
A former Canadian trade official argued in a webinar Thursday that deeper engagement with other affected countries could prove critical for the country’s ag sector.
Tyler Bjornson said Canada can capitalize on U.S. frictions with its trade partners by taking on a leadership role and engaging with powers like Brazil, Indonesia, Japan and Mexico.
“I believe in the future, it's these middle powers that Canada should be bringing together and talking about agrifood trade-related items,” he said.
HHS cuts are news to some lawmakers
Some lawmakers were caught off guard by the Department of Health and Human Services announcement to reduce its workforce by 20,000. The plan released Thursday morning includes a cut of 3,500 employees from the Food and Drug Administration.
Sen. John Hoeven, R-N.D., who chairs the Appropriations subcommittee that sets the FDA budget, said he was not told about the cuts ahead of time. His staff is now examining them.
He said it’s unclear if Martin Makary, who was confirmed as FDA commissioner on Tuesday night, had input on the staffing cuts. Hoeven said he plans to follow up with Makary soon on the reorganization.
“We understand they want to make reductions, find waste, fraud and abuse, but we want to look at it,” Hoeven said. “This is a process, and I think you're going to see it go back and forth, make sure that we have people in the places where we need them.”
Senate Health, Education, Labor and Pensions Committee Chair Bill Cassidy, R-La., found out about the cuts during a breakfast with HHS Secretary Robert F. Kennedy Jr., about the same time the announcement went out.
Another view: Agriculture Committee member Roger Marshall, R-Kan., said he spoke with Kennedy before the news broke and believes the Hill was appropriately notified. Kennedy told him that the people being let go are not “critical to the mission.”
"Under the last administration, there was a large number of employees added at HHS,” Marshall said. “So, I think certainly we came in here in a bloated number."
But there are still concerns: Brian Ronholm, director of food policy for Consumer Reports, said he’s worried food programs will face the brunt of the staff cuts because they’re among the few areas not mainly supported by private user fees. While the announcement said no food inspectors would be affected, Ronholm said a number of support staff could still be terminated, affecting food safety and public health.
Kennedy, Makary and others in the “Make America Healthy Again” movement have emphasized their desire to review and remove food chemicals, but consumer groups warn staffing cuts could hinder these efforts.
Senate Rs want broadband funding reforms
Thirteen Senate Republicans are urging the Trump administration to remove Biden-era requirements for broadband projects under the BEAD program.
In a letter, the senators ask Commerce Secretary Howard Lutnick to remove labor and climate provisions from the Broadband Equity, Access and Deployment program. The senators also are targeting requirements that they say favor “government-owned networks over private investment, and guidelines that prioritize certain technologies over others."
“These regulations undermine the very purpose of the BEAD program,” Senate Majority Leader John Thune, a South Dakota Republican who led the letter, said in a floor speech Thursday.
Take note: Former BEAD program director Evan Feinman recently warned in a departing letter that extensive changes to the program will only delay rolling out broadband projects. But he also wrote that some provisions inserted by the prior administration were for messaging or political purposes and had little impact on how the program has been implemented.
The National Telecommunications and Information Administration has approved all state plans for use of the $42.45 billion in BEAD money.
Dems pressure USDA on contracts
Sen. Cory Booker, D-N.J., and Rep. Gabe Vasquez, D-N.M., are leading a bill that would force USDA to release all funding for contracts with farmers. The Honor Farmer Contracts Act would require the department to “unfreeze funding for and implement all agreements and contracts” entered into by the department.
The bill also would prohibit closure of any Natural Resources Conservation Service or Farm Service Agency offices or Rural Development service center without 60 days notice to Congress.
Other bill sponsors include California Democratic Sen. Adam Schiff. “Our producers must be able to count on USDA to live up to their word — and their contracts,” he says.
Newsmakers features discussion on trade, immigration
Tune into Agri-Pulse Newsmakers today for a discussion about how Trump’s trade and immigration policies could affect ag producers with Jamie Castaneda from the National Milk Producers Federation and Cassandra Kuball from Torrey Advisory Group.
Plus, Agri-Pulse Editor-in-Chief Philip Brasher provides commentary on the top issues in Washington.
Newsmakers will be available later today on the Agri-Pulse website.
Final Word
“The question needs to be asked, ‘Are we letting the bureaucracy stand in the way of results and solutions?’ … Many folks feel disrupted by this. I get that. But I also think that the American taxpayer expects us to be more efficient.” — Rep. Adrian Smith, R-Neb., on the news that some foreign aid cuts killed programs dedicated to fighting zoonotic diseases.
“I think the FDA has a large amount of efficiency problems. I think that they can leverage technology better. I think that they can become more efficient” — Sen. Roger Marshall, R-Kan., when asked about food chemical staffing. “And if we need to hire more, we will.”
“I think they're going too far, too fast. They don't have a plan. They're just chopping heads.” — Sen. Dick Durbin, D-Ill., about the HHS cuts.
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