Trump-China Talks Put Ag Trade and Costs Back in Focus

Mike Steenhoek with the Soy Transportation Coalition joins us to discuss the proposed federal gas tax suspension, fuel cost pressures, and what the policy could mean for agriculture and transportation.

BEIJING, CHINA (RFD NEWS) — President Donald Trump’s visit to China is underway, with the first round of meetings now complete in Beijing. The White House says talks are off to a strong start, with agriculture reportedly among the key topics discussed.

More meetings are expected before Trump returns to Washington on Friday.

The ag industry hopes to see discussions shift from a deal framework to real grain commitments from China — especially in the soybean sector, where U.S. growers have lost some of their edge in the Chinese markets due to strong competition from South America.

Meanwhile, farmers are also struggling to keep up with rising input costs, especially for fuel and fertilizer.

The Trump administration is floating the idea of suspending the federal gas tax as fuel prices remain elevated during the ongoing conflict involving Iran, sparking debate over how much relief such a move would actually provide.

Mike Steenhoek with the Soy Transportation Coalition joined us on Thursday’s Market Day Report to discuss the proposal and what it could mean for consumers, truckers, and agriculture.

In his interview with RFD News, Steenhoek discussed how fuel tax holidays often gain attention during periods of high energy prices, while also questioning how much meaningful savings consumers ultimately receive. He reviewed calculations that examine the potential impact of a federal gas tax suspension and explained why projected savings for farmers may still amount to only a few dollars per day relative to broader input expenses.

Steenhoek noted that many farm operations already use tax-exempt dyed diesel, potentially limiting the direct effect of fuel taxes on agriculture relative to public perception.

He also discussed whether more targeted relief for trucking, agriculture, or freight transportation would make more sense than a broad consumer tax holiday.

Finally, Steenhoek weighed concerns that some savings could be absorbed by fuel suppliers or retailers instead of fully reaching consumers.

Related Stories
The country artist shared how FFA helped shape his confidence on stage as his music career took off.
As fall weaning begins, Jake Charleston explains how Livestock Risk Protection can establish a price floor for calves while allowing producers to benefit if markets rise.
Matt Frostic is bringing a farm-level perspective to E15, trade, the Farm Bill, and new corn markets as the new leader of the National Corn Growers Association.
RealAg Radio host Shaun Haney discusses the latest AEM equipment sales figures and the financial pressures affecting machinery purchases in the United States and Canada.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

U.S. farm debt has topped $605 billion, but vendor financing and other nontraditional lending may mean USDA estimates do not capture the full amount owed.
Lewis Williamson with HTS Commodities discusses fall harvest conditions, USDA’s October WASDE report, grain demand, and post-harvest storage.
Mitt Walker with the Alabama Farmers Federation joined RFD-TV to discuss the storm’s impact on Alabama agriculture, recovery efforts, and the additional financial pressure facing producers.
Brooks York with AgriSompo discussed hurricane-related crop insurance coverage and how the HIP-WI endorsement determines whether a claim is triggered.
Kyle and Natalie Blum, founders of Solar Shepherds, discussed how solar grazing works, its potential benefits for livestock producers, and the importance of keeping agriculture part of the changing rural landscape.
Saydee Longhurst’s story shows how farmers and advocates can connect consumers with agriculture, share farm life, and introduce young people to industry careers.
OOIDA’s Lewie Pugh says varying state rules and highway fuel-tax obligations could limit the benefits of Trump’s temporary red-dyed diesel order for truckers.
President Donald Trump says Russia will supply millions of tons of diesel fuel to global markets in a deal he expects to lower prices for farmers, ranchers, and truckers.
President Trump wants to strengthen enforcement of the Packers and Stockyards Act, but R.J. Layher says the Farm Bureau wants USDA to keep three rules in place.
USDA Under Secretary Dudley Hoskins discusses cattle port safeguards, screwworm surveillance, and plans to expand sterile fly production in Texas.
Arlan Suderman of StoneX joined market specialist Tony St. James to discuss the USDA’s October WASDE report and its implications for corn, soybeans, cotton, and commodity demand.
A federal court ruled FSA cannot use an internal handbook to create eligibility restrictions for county committee candidates that are not supported by law or regulation.