Good morning!
Grains calm as other markets melt down... Price action in the corn, soybean and wheat markets remained relatively calm overnight as other markets reacted sharply to the building tariffs war. As of 6:30 a.m. CT, corn futures are trading steady to fractionally higher, soybeans are within a penny of either side of unchanged, SRW wheat futures are a penny higher, HRW wheat is 5 to 7 cents higher and HRS wheat is 3 to 5 cents higher. Global stock markets and U.S. stock futures plunged overnight as frictions between the U.S. and China escalated. Importantly, there are increasing marketplace concerns about the U.S. Treasury market and its stability. Gold prices surged amid safe-haven buying.
U.S. reciprocal tariffs kick in... At 12:01 a.m. ET today, the U.S. officially enacted its new reciprocal tariffs, imposing levies of 10% or more on imports from countries that currently maintain higher tariffs on U.S. goods.
Trump issues executive order on Chinese tariffs... The White House released an executive order signed by President Donald Trump to put the higher tariffs in place on Chinese goods, moving the additional tariffs from 34% to 84%, reflecting the additional 50% duty that Trump ordered after China retaliated by imposing a 34% tariff on imports of U.S. goods. The order also increases the tariffs on de minimis items (those with a value under $800) to 90% from a prior 30% and the dollar level from May 2 to June 1 from $25 to $275 and from June 1 forward from $50 to $150. U.S. duties on Chinese imports nearly doubled to 104% (two existing 10% tranches, a newly implemented 34% reciprocal tariff and an added 50% penalty tariff for failing to remove its own 34% tariff after the U.S. reciprocal action) on Wednesday.
China hits back with 50% tariff counterstrike... China fired back at the U.S. with a sweeping 50% tariff on all American imports, mirroring Trump’s latest move to double tariffs on Chinese goods. In a strongly worded statement, China’s commerce ministry declared its resolve to “fight the trade war to the end.” The countermeasures from Beijing are scheduled to go into effect on Thursday and would raise China’s total additional tariffs to 84%. The tit-for-tat escalation marks a significant intensification in the trade standoff, with global markets bracing for broader fallout.
Greer: No exemptions for new tariffs as U.S. trade stance hardens... U.S. Trade Representative (USTR) Jamieson Greer told the Senate Finance Committee the new tariffs would take effect without exemptions or exclusions for any country. Greer warned that allowing carveouts would create a “Swiss cheese” trade policy, undermining enforcement. He emphasized that tariff removal would depend not just on reciprocal duty cuts but also on the dismantling of broader trade barriers against U.S. goods. Over 50 countries have reached out for talks — including Japan and South Korea. Greer returns for another round of testimony today before the House Ways & Means panel.
China to hold high-level meeting in response to U.S. tariffs... China’s top leaders plan to convene an emergency meeting to discuss measures to boost the economy and stabilize capital markets, people with knowledge of the matter told Reuters, amid an escalating trade war with the United States. Senior officials from the State Council and several government and regulatory bodies were expected to attend the meeting, said two sources. The policymakers were expected to discuss measures to boost domestic consumption and support capital markets. Initiatives such as export tax rebates were also likely to be discussed. To stabilize domestic sentiment, Chinese authorities are also bolstering local markets by deploying their “national team” — a group of state-backed funds — to increase purchases of A shares.
China’s yuan falls to 2007 lows as U.S. tariffs kick in... China’s yuan ended at its weakest level in more than 17 years on Wednesday after its offshore counterpart fell to a record low overnight, as an escalating trade war rattled currency markets. The onshore yuan finished the domestic trading session at 7.3498 per dollar, its weakest close since December 2007. Despite the tariff pressure, China’s central bank will not allow sharp yuan declines and has asked major state-owned banks to reduce U.S. dollar purchases, people with direct knowledge of the matter told Reuters. Economists expect continued downward pressure on the yuan as the People’s Bank of China shifts toward monetary easing to buffer economic fallout from the intensifying trade war.
U.S. considers adjusting port fee plan for Chinese vessels after pushback... The Trump administration is considering softening its proposed fee on China-linked ships visiting U.S. ports after a flood of negative feedback from industries that said the idea could be economically devastating, sources told Reuters. Among the changes under consideration are delayed implementation and new fee structures designed to reduce the overall cost to visiting Chinese vessels. Not all of the proposed multimillion-dollar fees for Chinese-built ships to dock at U.S. ports will be implemented and may not be cumulative. The administration was considering is charging a fee that is adjusted based on the number of Chinese-built ships in a company’s fleet, one source said. That would mean lower fees for those companies with fewer ships built in China. The administration was also mulling a charge based on the tonnage of unloaded vessels rather than a flat fee, two of the sources said. This would mean lower fees for smaller ships, rather than flat fees for all vessels. Not all of the proposed multimillion-dollar fees for Chinese-built ships to dock at U.S. ports will be implemented and may not be cumulative, U.S. Trade Representative Jamieson Greer told a U.S. Senate Finance Committee hearing on Tuesday.
China’s foreign exchange reserves rise to four-month high... China’s foreign exchange reserves rose $13.4 billion to $3.241 trillion in March, up from $3.227 trillion in February, marking the highest level since last November. The increase came as the dollar weakened against other major currencies. The yuan slid 0.31% against the dollar in March, while the dollar slumped 3.13% against a basket of other major currencies.
Rollins talks tariffs, trade and eggs... In an April 8 interview with Bret Baier on Fox News’ Special Report, USDA Secretary Brooke Rollins delivered a comprehensive defense of President Trump’s sweeping tariff policy, while addressing its effects on agriculture, supply chains and global trade. Rollins backed the administration’s aggressive tariff strategy, emphasizing the move as essential to protecting U.S. interests and combating unfair foreign trade barriers, especially those impacting key American exports like beef and corn. Rollins acknowledged that China’s retaliatory tariffs had intensified trade tensions. She conceded that global markets are feeling the strain but emphasized ongoing outreach to key allies like Japan and South Korea to buffer the shock. While admitting concerns about a possible recession and disruptions to global trade systems, Rollins remained optimistic. She reiterated the administration’s belief that short-term pain could yield long-term gain for U.S. agriculture and the broader economy. On domestic issues, Rollins sought to reassure Americans about food prices, stating that egg prices are expected to remain stable. This comes despite ongoing shortages from avian flu outbreaks and a drop in domestic egg production. To stabilize supply, the U.S. is increasing imports from Turkey, Mexico and other countries. USDA is also deploying resources to contain the avian flu, ease burdensome regulations inherited from the previous administration, and assist poultry repopulation — already helping stabilize prices. Bottom line: Rollins’ remarks signal the administration’s determination to reshape U.S. trade policy — even at the risk of short-term instability. While critics warn of economic fallout, Rollins framed the tariffs as a necessary reset to prioritize American farmers and regain leverage on the global stage.
Bangladesh pledges purchases of U.S. cotton, other ag goods... Bangladesh plans to buy more U.S. cotton in hopes of persuading Trump not to maintain a 37% tariff on exports that threaten its vital garments sector, Financial Times reported. Alongside an offer to “significantly increase” imports of wheat, corn and soyabeans, Bangladesh would streamline customs procedures and build dedicated duty-free bonded warehouses for cotton “to improve speed to market.” Interim leader Muhammad Yunus asked for a three-month grace period on the tariffs to allow his government to “substantially increase U.S. exports to Bangladesh.” The country also promised to cut tariffs on American products such as gas turbines, semiconductors and medical equipment.
Japan to sell rice stockpiles through July... The Japanese government will sell emergency rice stockpiles through July in an effort to rein in rising prices, the ag ministry said. Japan has so far released around 210,000 MT of rice stockpiles since March. The next auction of 100,000 MT will take place the week of April 21.
Mexico reports first human death from H5N1... Mexico on Tuesday logged its first human death from H5N1 avian influenza, a three-year-old girl in the northern state of Coahuila, according to the state’s health minister.
Livestock markets remain in liquidation mode... Cattle futures struggled to maintain modest corrective gains on Tuesday, while deferred hog futures gave up earlier advances into the close. Trade and recessionary concerns continued to hang over both markets.
Overnight demand news... Algeria purchased an unspecified amount of durum wheat expected to be sourced from the U.S., Canada or Australia. Jordan tendered to buy up to 120,000 MT of optional origin milling wheat.
See ‘Policy Updates’ for late-breaking morning news updates... For updates to items in “First Thing Today” or any late-breaking morning news stories, check “Policy Updates” on www.profarmer.com.
Today’s reports
- 9:30 a.m. Weekly Ethanol Production — EIA
- 2:00 p.m. Broiler Hatchery — NASS
- 2:00 p.m. Crop Production Historical Track Records — NASS