WASHINGTON, D.C. (RFD-TV) — On Wednesday, Treasury Secretary Scott Bessent and U.S. Trade Ambassador Jamieson Greer framed China’s tighter controls on critical minerals as economic coercion and warned of potential U.S. responses.
They reiterated that the goal is to de-risk supply chains rather than fully decouple, but said tariff options — including triple-digit rates previously floated — remain on the table. A possible leader-level engagement was described as a path to cool tensions even as agencies coordinate with allies on contingency plans.
The remarks did not spotlight agriculture directly, yet the implications are clear. Rare-earth and tech component constraints can ripple into precision ag equipment, motors, sensors, and power electronics, raising costs or lead times for dealers and co-ops. If tariff escalation proceeds — or if Beijing counters — headline risk typically shows up first in bulk channels tied to China: soybeans and products, sorghum, DDGS, ethanol, and selected meats.
The escalation in tensions with China comes as that country has pivoted to South America, away from the U.S., to fill its needs for soybeans and other ag commodities. On a related note, Brazilian trade officials are currently in Washington looking for a path to improve trade relations with the Trump administration. Recently, Brazil was hit with a high tariff rate that has cut supply lines to the leading global economy.
Bilateral Focus Reshapes U.S. Trade Priorities for Agriculture
U.S. trade strategy is leaning toward one-on-one deals rather than big multilateral pacts — a shift, Luis A. Ribera at Texas A&M says, that relies on tariffs and the size of the U.S. economy to gain leverage. With 166 World Trade Organization members, negotiating bilaterally with everyone is not realistic; past U.S. agreements have averaged about 18 months from launch to signing and roughly 45 months to implementation, stretching time and staff well beyond practical limits.
The good news is the U.S. does not need deals with everyone. The top 10 destinations buy 76 percent of all U.S. products — led by the European Union (17.51 percent), Canada (17.07 percent), Mexico (14.51 percent), and China (8 percent) — and the U.S. has agreements in force or under negotiation across that group. For agriculture, partner order differs.
Historically, China absorbed 17.25 percent of U.S. ag exports, with farm goods 23.98 percent of what China buys from the U.S., Canada took 15.38 percent (ag exports are 10.01 percent of U.S. sales there), and Mexico 14.99 percent (of that amount, 11.49 percent are ag-related products). Recent tensions, however, have caused China to slide to third behind Mexico and Canada. The top 10 now account for 71 percent of U.S. ag exports.
Can The U.S. and Argentina Team Up Against China on Trade?
Senator Chuck Grassley (R-IA) is calling for the U.S. and Argentina to team up against China. It comes after a visit to the White House this week by Argentina’s president.
“We should remember part of the solution is more trade, not less trade,” Sen. Grassley said. “The United States and Argentina should work together to reduce trade barriers between them and to turn away from China.”
President Trump this week doubled down on that $20 billion in support of Argentina, doubling the economic bailout for the South American country to $40 billion. Some members of the ag community see it as controversial, given Argentina’s role in supplying China with soybeans that used to come from the United States.
Sen. Grassley says there are currently three areas he sees that could help soybean farmers with sales to China, which are now dried up. He wants the Administration to finalize the RVO proposals, reallocate 100 percent of small refinery exemptions, and maintain the half-rins for foreign feedstocks and fuels. He says those three items could drive down foreign demand for soybeans, allowing American farmers to sell more crops here at home.
Minnesota is home to more than seven million acres of soybeans. Governor Tim Walz (DFL-MN) says farmers in his state are hurting, despite doing everything right.
“Donald Trump didn’t create these markets,” said Gov. Walz. “In fact, government didn’t create these markets. Farmers themselves, through Checkoff programs and hard work over decades, established markets globally that allow us to thrive; allow us to produce way more food than we’re going to use here. It allows us to feed the world. It brings stability, and right now all of this is at risk.”
Walz says he is hoping a solution is found soon, warning American farmers are losing access to critical markets.
In a letter to the White House and Congressional Ag leaders, the National Farmers Union (NFU) is asking for immediate action on economic relief for farmers and ranchers. NFU President Rob Larew says recent trade policies have wreaked havoc on markets.
USDA Reaffirms Commitment to Help Farmers Find Success
The U.S. Department of Agriculture (USDA) has said any economic relief will have to wait until the shutdown is over.
However, during a recent cabinet meeting, U.S. Secretary of Agriculture Brooke Rollins said the USDA is working on long-term solutions that enable farmers to receive payments for their products instead of direct government payments.
RFD-TV News reached out to the USDA regarding further escalations of trade tensions with China, the President’s announcement to double his economic bailout of Argentina, and the lack of progress on farm aid while the federal government remains in partial shutdown.
In a statement provided to RFD-TV News on Wednesday evening, a USDA spokesperson reiterated President Trump and USDA’s commitment to farmers:
