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.

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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.

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