It has been a busy week with big shakeups in trade policy, and a lot has taken place over the last 24 hours.
As of right now, President Trump has hit pause, taking all country-specific tariffs down to 10 percent for 90 days, but that does not include China. He raised their tariff rate to 125 percent.
Other nations are already responding to the recent adjustments. Within the last few hours, the European Union announced a pause of their own. It came after the EU voted for new tariffs on U.S. steel and aluminum, which are now on the back burner.
Ag lawmakers say the tariff pause is a win for America, with Louisiana Senator John Kennedy saying he is confident the U.S. and China will soon reach a deal.
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While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
China’s renewed purchases signal improving sorghum demand at a time when export markets are otherwise uneven. Meanwhile, agriculture groups across the U.S, Canada, and Mexico want to protect close trade relations.
Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
Despite the need for swift action, many ag lawmakers and industry groups argue that farm aid alone will likely not be sufficient to help farmers without improved trade relations with China.
