Tit-for-Tat Trade War Pivots to China as Beijing Hits Back at U.S. Tariffs

Rollins: Could take “literally months” to determine whether ag compensation needed, but assures administration prepared to act if required

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Updates: Policy/News/Markets
(Pro Farmer)

Updates: Policy/News/Markets, April 4, 2025


— Trump doubles down on tariffs despite global fallout: “My policies will never change.” Amid mounting global economic strain from his sweeping tariffs, President Donald Trump reaffirmed his hardline economic stance Friday morning. In a social media post directed at foreign investors, Trump declared, “TO THE MANY INVESTORS COMING INTO THE UNITED STATES AND INVESTING MASSIVE AMOUNTS OF MONEY, MY POLICIES WILL NEVER CHANGE. THIS IS A GREAT TIME TO GET RICH, RICHER THAN EVER BEFORE!!!” The defiant message comes just a day after the president left the door open for tariff reductions — but only if other countries offer something “phenomenal” in return. The mixed signals are adding uncertainty to already tense global markets, with investors and trading partners watching closely for further shifts.

— China hits back: 34% tariff on U.S. goods sparks escalation in trade war. China announced it will impose a 34% retaliatory tariff on all U.S. imports beginning April 10 in direct response to President Donald Trump’s tariff hike on Chinese goods. The move deepens an already fraught economic relationship between the world’s top two economies.

President Trump recently raised cumulative tariffs on Chinese imports to 54%, including a sharp 34% increase unveiled earlier this week. Framing the move as a counter to “unfair foreign trade practices,” the administration has simultaneously levied tariffs on other global partners, sparking global trade anxiety.

Besides tariffs, Beijing rolled out several punitive actions:
· Unreliable entities list: Eleven U.S. firms are now barred from doing business in China.
· Rare earth export limits: Key materials critical to EVs and defense are now under stricter export controls.
· Agricultural hit: Select U.S. chicken exporters have been suspended by China’s customs authority.

Economic fallout
· U.S.: American consumers may face higher prices and inflation, with global demand possibly cooling due to ripple effects.
· China: Growth could shrink by up to 2.4 percentage points in 2025, deepening its ongoing deflationary challenges. Beijing may turn to domestic stimulus and new markets in Southeast Asia, Africa, and Latin America to cushion the blow.

Global implications: This standoff has serious implications for global trade and supply chains. As countries hit by U.S. tariffs seek new alliances, China might find fresh diplomatic and economic partners. However, the scale of U.S. demand remains difficult to replace.

What’s next? With both sides doubling down, hopes for swift resolution are dim. The Trump administration may come back with additional tariffs or other action on China. Analysts warn of prolonged disruptions, shifting trade flows, and intensified economic nationalism.

Ag market impact: Commodity trader and analyst Richard Crow says “The Brazil bean basis surged by more than 40 cents as the cash markets decoupled. China’s import tariffs would suggest that China shift as much of its demand as possible to origins outside the U.S.The final demand for any commodity is subject to how the world economies hold together.” Crow also notes that the release of the Census export corn export numbers suggests corn exports could exceed the number used in USDA’s balance sheet.

Of note: Tariff uncertainty risks chilling investment. “Trump’s tariff plan probably represents a shift for markets to quickly move from max uncertainty to max pessimism,” Jeff Buchbinder, the chief equity strategist for LPL Financial, told the New York Times.

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U.S. Tariffs
(White House, USTR)

— Immediate U.S. farm aid unlikely as tariffs stir fresh tensions in ag sector. USDA Secretary Brooke Rollins signaled that immediate financial assistance for farmers may not be necessary following President Trump’s newly announced tariffs, despite growing concern within the agricultural sector. Rollins noted that it could take “literally months” to determine whether compensation is needed, but assured that the administration is prepared to act if required. The tariffs, part of Trump’s “reciprocal trade” agenda, have triggered fears of retaliatory measures from key trading partners — just as China has already done (see above item). With American farmers heavily dependent on global markets, industry leaders warn of rising input costs and shrinking demand due to potential counter-tariffs.

Drawing parallels to Trump’s previous term, Rollins acknowledged discussions with former Agriculture Secretary Sonny Perdue about possibly reviving large-scale aid programs like those deployed during the U.S./China trade war.

While concerns mount, Rollins emphasized the administration’s ongoing commitment to rural communities. She is in the midst of a six-month international trade mission targeting markets in Vietnam, Japan, and Brazil, aiming to strengthen export opportunities and reduce reliance on any single trade partner.

Still, the mood across the agriculture industry remains wary, with many awaiting clarity on both the economic fallout of the tariffs and the administration’s willingness to cushion the blow.

— Trump open to tariff relief — but wants “phenomenal” returns. President Donald Trump suggested Thursday he may be open to scaling back tariffs if trading partners offer significant concessions, signaling a possible shift in tone even as the White House continues to ramp up trade pressure. “The tariffs give us great power to negotiate,” Trump said aboard Air Force One, adding that “every country has called us.”

Despite a $2.5 trillion market plunge this week — one of the steepest since the height of the pandemic — Trump defended his tariff policies and remained optimistic about the U.S. economy. “I think our markets are going to boom. Got to give it a chance,” he said.

Open to negotiations: Trump said he’s willing to reduce tariffs if nations offer something “phenomenal,” and singled out China as a potential beneficiary — particularly if it facilitates the sale of TikTok’s U.S. operations. “We’re very close to a deal,” he said.

More tariffs on the horizon: Trump hinted that new levies are coming soon on microchips and pharmaceuticals, calling them a “separate category” currently under review.

Market jitters: Stocks tumbled sharply Thursday, with the S&P 500 down nearly 5% and the Russell 2000 entering bear market territory — down 20% from its peak.

Pharma hit abroad: Pharmaceutical shares in India slid in response to Trump’s tariff comments, part of a wider decline across Asian markets.

Global reactions: Trump confirmed he had been in touch with global leaders and executives, including a call with Israeli PM Benjamin Netanyahu, who may visit the U.S. next week. Despite Israel lifting its tariffs on U.S. goods, Trump’s administration imposed a 17% rate on Israeli imports.

Winners and losers: The UK appears to have fared better, facing just a 10% tariff under the new rules — lower than the 20% now applied to EU nations.

Economic outlook: Trump remained upbeat about economic fundamentals, pointing to falling interest rates, energy prices, and grocery costs. “I like eggs going down,” he said, calling the shift a “positive” sign for consumers. Still, investors remain wary as the administration presses forward with its trade offensive.

Political Implications: While Trump’s openness to negotiation could ease tensions with allies and trade partners, his willingness to impose additional levies — particularly on sensitive sectors like pharma — may complicate diplomatic and economic relations. The mixed messaging underscores the balancing act between tough talk and strategic retreat.

— Markets price in five Fed rate cuts by year-end amid tariff fallout: CME Fed funds futures have shifted sharply in the wake of recent tariff actions, with markets now expecting no change at the May 6–7 FOMC meeting. However, expectations for the remainder of the year suggest five rate cuts — one at each of the Fed’s June, July, September, November, and December meetings. Each cut is projected to be 25 basis points, which would bring the target Fed funds rate down to 3%–3.25%, from the current 4.25%–4.5%.

— Tariffs trigger global shockwave: Inflation for U.S., deflation for the world. For the second time in five years, the global economy is grappling with a major supply shock. But unlike the Covid-19 pandemic, which triggered inflation almost everywhere, this time the effects are split — and deeply political.

U.S. inflation vs. global deflation. The U.S. is now poised for a fresh wave of inflation. “This is going to be pretty deflationary for large sections of the rest of the world, while for the U.S. it’s going to be intensely inflationary,” said Thomas Gatley of Gavekal Dragonomics during a Thursday webinar.

Key to the concern: China. Tariffs on Chinese goods now average around 60%, with some products facing rates as high as 79%, according to Commerce Secretary Howard Lutnick. And the pain doesn’t stop at China’s borders. Countries like Vietnam — which had become alternative suppliers — are also being hit hard, despite their heavy reliance on Chinese components.

A flood of cheap goods headed for Europe. With access to the U.S. market curtailed, China is expected to redirect its excess production elsewhere — especially to Europe. Deutsche Bank’s Robin Winkler calls this export diversion “likely inevitable.” The result? European manufacturers may face fierce competition from an influx of low-cost Asian goods, adding pressure on prices.

The European Central Bank could respond with faster interest rate cuts as deflationary forces intensify, analysts predict.

China’s dilemma and the American consumer. China itself faces worsening deflation due to a sharp drop in external demand. UBS economist Wang Tao said Beijing’s deflationary pressures will only grow from here. Meanwhile, American households are bracing for higher prices, with little chance for trade diversion to soften the blow. As UBS’s Jonathan Pingle put it, the breadth of the tariffs leaves few options: U.S. consumers are on the hook.

Takeaway: Trump’s tariff strategy marks a turning point in global trade. While it may score political points at home, the ripple effects are unmistakable — and asymmetric. Inflation for the U.S., deflation for much of the world.

— U.S. inflation watch: The Federal Reserve’s preferred inflation gauge, the core PCE price index, is now seen climbing roughly 4.6% this year, or about 2 percentage points more than some predicted last month.

Of note: USDA Secretary Brooke Rollins said Thursday the eggs the U.S. is importing from countries like South Korea and Turkey as part of her plan to fight bird flu will be subject to Trump’s tariffs.

FINANCIAL MARKETS

— Equities today: Asian and European stock markets were solidly lower in overnight trading. U.S. stock indexes are again pointed to sharply lower and multi-month-low openings. U.S. stock markets on Thursday suffered their worst losses since 2020 amid the Covid pandemic in the wake of President Donald Trump deploying reciprocal tariffs against U.S. trading partners. U.S. stocks index futures point to additional sharp losses to start Friday’s session, with declines of at least 2.4%. The yield on the 10-year U.S. Treasury note has also falling, moving below 4% as fears of a U.S. recession are starting to mount. In Asia, Japan -2.8%. Hong Kong closed. China closed. India -1.2%. In Europe, at midday, London -3.4%. Paris -3.8%. Frankfurt -4.5%.

The yield on the 10-year Treasury bond plummeted below 4% on concerns that tit-for-tat moves would plunge the economy into a recession.

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Plunges in Equities
(Bloomberg, New York Times)

— U.S. Employment report: Strong hiring meets rising unemployment in March. The U.S. labor market in March painted a nuanced picture: while hiring remained robust, signs of strain began to surface. Employers added 228,000 nonfarm jobs, outpacing forecasts, yet the unemployment rate inched up to 4.2% from 4.1%, reflecting underlying economic headwinds.

Highlights

  • Payroll growth: Job creation beat expectations (125,000–185,000 range), thanks to gains in health care, transportation, warehousing, and retail, along with strike-returnees boosting overall numbers.
    • Private sector: +155,000 jobs, with notable rebounds in construction and leisure.
    • Federal jobs: Continued to decline amid spending cuts and efficiency layoffs.

· Unemployment rate: The number of unemployed rose to 7.1 million, driven in part by federal layoffs and uncertainty stemming from new trade policies.

· Wage growth: Average hourly earnings climbed to $36.00, extending an upward trend as inflationary pressures linger.

Policy and economic context: President Trump’s recent move to impose broad tariffs on imported goods is introducing a new layer of economic uncertainty. Analysts warn that these trade policies could curb business investment and consumer demand, with potential labor market repercussions in the quarters ahead. Since February, over 200,000 federal workers have been laid off, contributing to the uptick in joblessness and clouding the near-term outlook.

Outlook: Resilience with risks. Despite the solid pace of hiring, economists caution that tariff-related disruptions and ongoing government downsizing may weaken labor market momentum. With unemployment rising and confidence under pressure, businesses could scale back hiring as they adjust to shifting economic conditions. April’s report may be a clearer test of how well the job market can withstand mounting policy shocks.

— Canada’s total employment fell and the unemployment rate ticked up in March, data showed on Friday, as impact of uncertainty around tariffs and their subsequent implementation took a toll on hiring and spurred some layoffs. The country’s employment number dropped by a net of 32,600 people, the first decrease in more than two years driven by a steep decline in full-time work, Statistics Canada said.

— JPMorgan raises recession odds to 60% after Trump tariff move. JPMorgan Chase now sees a 60% chance of a U.S. — and possibly global — recession following Donald Trump’s latest round of reciprocal tariffs, up from a 40% estimate earlier. While not a certainty, the bank warns the policies could trigger a downturn this year. Economists led by Bruce Kasman note the current economic landscape suggests any recession may be mild, but also caution that recessions are “inherently unpredictable.”

— Wall Street braces for Fed Chair Powell’s take on tariffs. At 11:25 a.m. ET, Federal Reserve Chair Jay Powell is set to make his first public comments since reciprocal tariffs were introduced. Investors are watching closely to see if Powell maintains his stance that the tariffs’ impact on inflation and economic growth is “transitory,” or signals a shift in outlook.

AG MARKETS

— Ag markets today:

  • Fresh tariffs spur selling pressure in early grain trade. Corn and wheat saw positive action ahead of Beijing’s announcement of fresh tariffs on U.S. goods this morning (see related item above), but the grain and oilseed complex turned lower in early morning trade as the trade war escalated with Chinese tariffs. As of 7:30 a.m. ET, corn futures were trading 6 to 7 cents lower, soybeans were 24 to 26 cents lower, winter wheat was 11 to 13 cents lower and spring wheat was 7 to 8 cents lower. Front-month crude oil futures plunged to the lowest mark in four-years this morning (see related item below) and continue to see liquidation selling pressure. The U.S. dollar index was around 50 points lower, consolidating following yesterday’s weakness.
  • Wholesale beef continues pullback. Choice cutout is down another $1.53 to $338.37, the second consecutive daily decline. Select fell 99 cents to $317.84 Thursday, bringing the Choice/Select spread to $20.53. Cash cattle trade remains light through mid-week at weaker prices, averaging $210.00 so far, though movement remains light at just 266 head.
  • Pork cutout rebounds from 2-month low. Pork cutout climbed $1.11 to $94.81 Thursday, led by a $7.04 jump in bellies. Cutout climbed despite another steep downtick in bellies. Movement remained strong at 347.76 loads indicating higher demand at lower prices.

— China keeps buying U.S. soybeans, for now. USDA weekly Export Sales data for the week ended March 27 included activity for 2024-25 of net sales of 285,857 metric tons of soybeans but net reductions of 21,357 running bales of upland cotton. Activity for 2025 included 495 metric tons of beef and 10,279 metric tons of pork. Exports of U.S. soybeans for the week have now pared the outstanding soybean sales total to 598,481 metric tons to China and the combination of cancellations and exports has reduced the outstanding sales of cotton to 88,642 running bales.

— USDA attaché sees continued Brazilian corn production growth. USDA’s attaché in Brazil sees continued growth in Brazilian corn production, estimating 2025-26 (next year’s production) rising to 130 MMT. That would be up from 126 MMT in 2024-25 but still below record production in 2022-23 of 137 MMT. Both domestic use and export use in Brazil are growing, keeping stocks tight and prices high, enticing plantings.

ENERGY MARKETS & POLICY

— Oil glut and tariffs drive prices to 4-year lows; crude oil hits $61.95 — lowest since 2021. Crude oil prices have plunged to their lowest level in four years, trading at $61.95 per barrel as of April 4 — a 7.47% drop from the previous close. Both Brent and WTI benchmarks are nearing lows not seen since late 2021, with the energy market under pressure from a perfect storm of supply increases, economic anxiety, and evolving geopolitical shifts.

Key drivers behind the drop

  • OPEC+ production surge: Starting this month, OPEC and its allies have begun unwinding pandemic-era output cuts, adding millions of barrels per day to global supply. The move has triggered fears of a market glut.
  • Tariff-fueled economic jitters: New U.S. tariffs under President Trump on imports from Canada, Mexico, and China are raising the risk of a global trade slowdown — potentially curbing energy demand, even though oil imports are technically exempt.
  • Geopolitical shifts: Hopes for a resolution in the Russia-Ukraine conflict could ease sanctions and unleash more Russian oil into the market. Meanwhile, earlier price-supporting tensions — such as U.S. strikes on Houthi militants — have faded into the background.

Market & policy implications: While the price drop may bring short-term relief at the gas pump, it spells trouble for oil-dependent economies and energy companies whose margins rely on higher prices. Analysts expect continued market turbulence as traders respond to OPEC+ actions and the broader impact of trade policy shifts.

The chart below shows the annual average prices of WTI crude oil from 2021 to 2025, alongside the April 4, 2025, price of $61.95 per barrel (marked with a red dashed line).

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WTI Crude Price Plunge
(Exchange)

TRADE POLICY

— Feedback on Trump’s tariff policy. The New York Times gathered some comments from others regarding Trump’s recent trade tariffs. Some of them:

· It’s just temporary: “If a 9th grader in high school presented this tariff chart to a teacher in a basic economics class, the teacher would laugh and say sit down and work on the assignment. — Dan Ives, a Wedbush Securities analyst, warning that if the tariffs aren’t quickly rescinded, the U.S. and the world would suffer “a self-inflicted economic Armageddon.”

· On the global economy: “I talked to probably 10 CEOs who are all in the Business Roundtable — these are CEOs of the largest companies in America — overnight, and to a one they think this is a huge mistake. They think this is too much, that it will have lasting and cascading negative repercussions for the United States and the global economy.” — Brad Gerstner, the CEO of Altimeter Capital, on CNBC.

· Negotiate with Trump: “Just pick up the phone. Call the President, and make a deal. Just some advice from a friend of the global economy.” — Bill Ackman, the CEO of the hedge fund Pershing Square, on X.

· Who’s going to make up the shortfall? “Guys, I’m not involved in our trade policy, and I get where some of this is coming from — let’s build more at home! But Ethiopia and Madagascar aren’t going to suddenly start buying billions of dollars of goods from us, and I’m not sure it helps us to punish them for it?” — Joe Lonsdale, a co-founder of Palantir, a venture capitalist and a Trump supporter, on X.

· It’s unrealistic: “If any administration of which I was a part had launched an economic policy so totally ungrounded in serious analysis or so dangerous and damaging, I would have resigned in protest.” — Larry Summers, a Treasury secretary under President Bill Clinton and a board member at OpenAI.

· It’s a tax on consumers: “Mr. Trump is making a deliberate decision to transfer wealth from consumers to businesses and workers protected from competition behind high tariff walls.” — The editorial board of the Wall Street Journal.

— Carney strikes back: Canada imposes targeted tariffs in escalating auto trade war. Canadian Prime Minister Mark Carney announced a 25% tariff on U.S.-made cars that do not comply with the USMCA (CUSMA) agreement, retaliating against President Donald Trump’s sweeping global auto tariffs. The U.S. tariffs, which target over $460 billion in auto imports annually, have already led to significant production halts and layoffs across North America — including 3,200 Canadian, 2,600 Mexican, and 900 American workers, primarily from Stellantis NV facilities.

Carney emphasized that the countermeasures are carefully designed to minimize domestic fallout while maximizing impact in the U.S., sparing auto parts and Mexican-made cars to protect Canada’s integrated manufacturing system.

All revenue — up to $8 billion — from Canada’s countertariffs will be directed to support affected autoworkers and manufacturers, besides a previously announced $2 billion fund aimed at rebuilding the domestic auto sector. A federal relief framework is in development for companies maintaining Canadian operations.

Trump’s tariff plan spares compliant Canadian and Mexican vehicles under USMCA rules but still applies steep levies — 25% on autos, 10% on potash and energy, and 12.5% on Canadian-made vehicles meeting minimum U.S. content thresholds. Trump claims the move will force manufacturers to relocate to the U.S., though experts warn it could spike inflation and curb auto sales.

Carney warned of possible new U.S. tariffs on lumber, pharmaceuticals, and semiconductors. He urged preparation for “calibrated and energetic” responses and signaled an interest in renegotiating USMCA after the April 28 election. With inflation looming and a potential North American recession on the horizon, Carney stated bluntly: “The road ahead will be bumpy.”

— White House reciprocal tariff math called out as flawed, economists say. The Trump administration’s newly announced reciprocal tariffs claim to be based on countries’ treatment of U.S. goods. But experts say the math doesn’t reflect actual tariffs — and might just be an oversimplified calculation based on trade deficits, not real-world data.

President Trump unveiled a sweeping tariff plan, claiming countries like China, Vietnam, and the EU would face new levies based on how unfairly they treat U.S. goods. The logic? If they charge us 60%, we’ll charge them 30%.

But economists say the White House used a crude formula:
Trade Deficit ÷ Import Value = Implied Foreign Tariff
This has little to do with actual tariff or non-tariff barriers.

Economists push back:

  • James Surowiecki called the method “extraordinary nonsense.”
  • Purdue’s Anson Soderbery, whose own work was cited, said the administration “missed the point” of his paper.
  • University of Michigan’s Andrei Levchenko warned the math ignores real-world complexity, like retaliation.
  • BMO’s Jennifer Lee said she expected an army of analysts, but saw little more than division equations.

Even when a fancier formula was posted online by the USTR, the numbers plugged in (like elasticity and pass-through rates) conveniently simplified the math to the same outcome.

EU example – way off base: The White House claims the EU charges 39% in tariffs. The EU says it’s closer to 1%. Britain, with a trade surplus, still gets a 10% baseline tariff — no nuance applied (but the Trump administration says the concept of the 10% baseline tariff was to have a level imposed that will keep countries from trying to circumvent the tariffs by trans-shipping goods through other countries to avoid the higher tariffs.

Experts say this formula could inject major inefficiencies into the economy, distort industry-specific dynamics, and ultimately raise prices for consumers. As one professor put it: “These types of formulas scare me.”

Bottom line: The Trump administration’s tariff math may look complex on paper, but behind the curtain, it’s a simplified, deficit-based shortcut. Economists across the spectrum are warning: it’s not just bad math — it’s bad policy.

— Some Canadian goods face steep U.S. tariffs despite USMCA — compliance not always easy. According an article in Canada’s Globe and Mail (link), Canadian exporters are under growing pressure to ensure their goods meet the standards of the United States-Mexico-Canada Agreement (USMCA), or risk being hit with steep U.S. tariffs — some as high as 25%. But not all goods can easily be made compliant, putting certain sectors at a disadvantage.

This week, President Trump’s administration maintained blanket 25% tariffs on non-compliant goods (10% for some energy products), even while exempting Canada and Mexico from broader global levies. While roughly 40% of U.S.-bound shipments from Canada are already USMCA-compliant, trade experts suggest a large share could qualify if businesses complete the necessary paperwork.

However, compliance isn’t always straightforward. Anywhere from 10% to 20% of Canadian exports may not be feasibly adapted to USMCA rules due to complex origin requirements and reliance on foreign inputs. Industries like aerospace, telecom, and medical equipment are particularly vulnerable, according to Jesse Goldman of Osler, Hoskin & Harcourt LLP cited in the Globe & Mail item.

Companies relying heavily on materials from Europe or Asia face major supply chain overhauls to avoid penalties. The alternative? Pay the tariffs or rethink their production processes — options that may be neither cheap nor quick.

Of note: Other industries, such as agriculture and resource extraction, remain largely unaffected. Products fully sourced and processed in Canada, like mined minerals or farm produce, are considered safe.

But sectors like electronics, toys, food processing, and rubber goods must get creative to comply — by switching suppliers, blending materials, or increasing local labor and production costs. For example, turning imported fruit into jam may qualify it as a new product under USMCA, while simply glazing it would not.

What happens next? A recent White House executive order noted that if reciprocal tariffs are lifted, non-compliant goods could still face a 12% tariff. That means affected Canadian businesses may need to adapt—or pay—for the long haul.

📌 Takeaway: USMCA compliance isn’t just paperwork — it’s a potential overhaul. Canadian companies in complex manufacturing sectors may be paying the price until they can retool or re-source.

PERSONNEL

— Kennedy admits errors in HHS layoffs, vows reinstatement of critical health programs. Health and Human Services Secretary Robert F. Kennedy Jr. acknowledged Thursday that roughly 20% of recent mass layoffs at the department were likely mistakes, with a reinstatement process now underway. The layoffs, part of a sweeping government overhaul led by Elon Musk’s Department of Government Efficiency (DOGE), initially cut 80% of federal positions as part of a strategy to streamline operations.

Among the 10,000 affected were employees from key agencies including the CDC, FDA, and NIH. One major error: the shuttering of the CDC’s Lead Poisoning Prevention and Surveillance Branch, which Kennedy confirmed will be reinstated. Also impacted were FDA inspectors and NIH researchers critical to public health oversight.

Kennedy defended the initiative, projecting $1.8 billion in annual taxpayer savings, but acknowledged the missteps were an expected byproduct of such drastic cuts. The HHS workforce dropped from 82,000 to 62,000, with divisions cut from 28 to 15 and regional offices halved.

Despite initial support for increased efficiency, public backlash has mounted due to disruptions in programs addressing lead contamination, avian influenza, and pharmaceutical safety. Kennedy reiterated that reinstating essential personnel and programs was “always part of the plan,” as the department now works to stabilize critical services.

FOOD & FOOD INDUSTRY

— Brown, Craig lead 102 House Democrats in urging USDA to reverse emergency food assistance cuts. House Agriculture Vice Ranking Member Shontel Brown (D-Ohio) and Ranking Member Angie Craig (D-Minn.) led a letter (link) signed by 102 House Democrats to USDA Secretary Brooke Rollins, expressing alarm over the Trump administration’s decision to halt $500 million in Commodity Credit Corporation funding for food banks under The Emergency Food Assistance Program (TEFAP). The lawmakers cite rising food insecurity affecting over 47 million Americans, including 1 in 5 children, and warn of consequences for both families and farmers. The letter requests clarification from USDA on the permanence of the cuts, the status of prior food purchases, and any plans to mitigate the impact — asking for a response by April 18. :

CHINA

— China concludes two-day warm games around Taiwan. The Chinese military recently ended two-day war games around Taiwan in which it held long-range, live-fire drills in the East China Sea, marking an escalation of exercises around the island. China has held several training exercises in the East China Sea which were seen as an escalation of the conflict with Taiwan, whom China sees as their territory.

WEATHER

— NWS outlook: Life-threatening, catastrophic, and potentially historic flash flood event continues across the Lower Ohio Valley and Mid-South to Lower Mississippi Valley... ...Additional episodes of significant severe weather expected from the Mid-Southwest through the Ozarks and ArkLaTex with very large hail and strong tornadoes possible... ...Moderate to locally heavy snow showers expected for the Rockies, with some snow showers spreading into the High Plains through Saturday... ...Well above average, very warm Spring temperatures to end the week across the Southeast with numerous record-tying/breaking highs possible.

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NWS Outlook
(NWS)

KEY DATES IN MARCH & APRIL

4: Employment
4: NCAA Women’s basketball Final Four starts
5: NCAA Men’s basketball Final Four starts
7: Crop Progress | Agricultural Trade Data Update
7: The Masters (golf)
9: Crop Production Historical Track Records
10: CPI | Crop Production | WASDE
11: PPI-FD | Consumer Sentiment
13: Passover begins
14: Crop Progress
15: 2024 income taxes due; last day for 2024 IRS, HSA contributions; first quarter 2025 taxes due
16: Retail Sales
17: Housing Starts and Permits; Cattle on Feed; National Hemp Report
18: Good Friday
20: Easter
21: Crop Progress | Chickens and Eggs
21: Boston Marathon
22: Existing Home Sales | Milk Production
23: New Home Sales
24: Durable Goods Orders | Cold Storage
25: Food Price Outlook | Consumer Sentiment
28: Crop Progress
29: International Trade in Goods | JOLTS | Consumer Confidence | Meat Animals - Prod., Disp., and Income | Milk - Prod., Disp., and Income | Poultry - Production and Value
30: ADP Employment | Employment Cost Index | GDP | Personal Income and Outlays incl. PCE Price Index | Ag Prices

LINKS

Economic aid for farmers | Disaster aid for farmers | Farm Bureau summary of aid/disaster/farm bill extension | 45Z tax incentive program | Poultry and swine line speeds | U.S./China Phase 1 agreement | WASDE | Crop Production | USDA weekly reports | Crop Progress | Food prices | Farm income | Export Sales weekly | ERP dashboard | RFS | IRA: Biofuels | IRA: Ag | SCOTUS on WOTUS | SCOTUS on Prop 12 pork | Gov’t payments to farmers by program | Farmer working capital | USDA Ag Outlook Forum | Eggs/HPAI | NEC task force on HPAI, egg prices | Options for HPAI/Egg prices | Trump tariffs | Greer responses to lawmakers | Trump reciprocal tariffs |