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Trump: ‘Of course, I’m going to respond’ to EU... President Donald Trump said he would respond to the European Union’s countermeasures against new U.S. 25% tariffs on steel and aluminum, without providing specifics. “Of course I’m going to respond,” Trump said. “The problem is our country didn’t respond. Look, the EU was set up in order to take advantage of the United States.”
Mexico continues to take non-aggressive approach to U.S. tariffs... Mexico is delaying its response to US tariffs on steel and aluminum imports as President Claudia Sheinbaum avoids retaliation while both countries negotiate to avert levies on a wide range of products and services. Sheinbaum said she would rather wait until Trump decides whether or not to impose 25% tariffs on Mexican imports in general. Those tariffs are currently scheduled to start April 2.
“Given that we have a trade agreement and there are no tariffs from Mexico to the United States, well, there shouldn’t be any reciprocal tariffs,” Sheinbaum said at her daily press conference. “So we’ll wait until April and then make our decision on whether or not to impose reciprocal tariffs.”
Mexico’s Economy Ministry Marcelo Ebrard and other officials were in Washington this week to discuss steel and aluminum tariffs.
U.S. consumer inflation eases in February... Consumer inflation rose 0.2% from the previous month and 2.8% from year-ago in February. That was down from gains of 0.5% on a monthly basis and 3.0% annually in January. Core inflation, minus food and energy costs, rose 3.1% annually in February, the lowest since April 2021.
Food prices increased 2.6% annually during February, the highest since the same gain in January 2024. Food at home (grocery) prices rose 1.9% and food away from home (restaurant) costs increased 3.7%.
The index for egg prices surged 58.8% from year-ago. The average retail price for a dozen Grade A eggs surged to a record $5.90 per dozen, eclipsing the previous high of $4.95 in January.
USDA reported negotiated wholesale prices for graded loose eggs has started to decline sharply this month as demand weakened from all sectors. Retailers are also curbing advertising, and promotions have been “nearly non-existent” as grocery retailers don’t want to jeopardize the progress they’ve made in restocking coolers by encouraging egg buying, USDA said. Still, demand is expected to pick up near-term as Easter buying approaches.
Canadian farmers intend to plant more wheat, less canola... According to Statistics Canada, Canadian farmers expect to plant more wheat and slightly less canola this year. Planting decisions for the upcoming growing season are likely impacted by several factors, including moisture conditions, crop rotation considerations and prices, with political and macro-economic economic chaos also being front-and-center right now, according to MarketsFarm.
Canadian farmers intend to plant 27.5 million acres of wheat this year, up 702,000 acres (2.6%) from last year. Spring wheat area is expected to drive the increase, rising 2.5% to 19.4 million acres. The higher anticipated area seeded to wheat may be due to strong global demand for high-quality wheat and an alternative to canola, according to Mike Jubinville with MarketsFarm.
Canola plantings are expected to decline 365,000 acres (1.7%) to 21.6 million acres, which is roughly in line with the five-year average. Jubinville said the decline in expected seeded area may be due to lower profitability for canola relative to other crops, in addition to other factors, including soil moisture in Western Canada. Jubinville said, “We suspect farmers have been disappointed in recent agronomic canola performance. Plus, canola input costs are crazy high. The canola number may yet come in even lower given the recent price pressure.”
Meat Institute Urges USTR to remove trade barriers and expand market access... The Meat Institute has urged the U.S. Trade Representative (USTR) to eliminate non-tariff trade barriers and expand market access for U.S. meat and poultry products. In comments submitted to USTR Jamieson Greer, the Meat Institute highlighted concerns over unfair trade practices that hinder industry growth.
Meat Institute President and CEO Julie Anna Potts emphasized the Trump administration’s opportunity to advance U.S. leadership in global trade, noting that policies promoting open markets and reduced trade barriers benefit American workers and the economy.
Key industry concerns include:
- China’s failure to meet Phase 1 trade commitments and retaliatory tariffs on U.S. meat.
- Regulatory obstacles limiting beef and pork exports to Taiwan.
- Trade barriers restricting access to growing Southeast Asian markets.
- Ongoing restrictions under the U.S./Korea Free Trade Agreement (KORUS).
- EU and UK policies that limit U.S. meat and poultry exports.
- Rising establishment registration requirements affecting global market access.
The Meat Institute underscored the economic significance of the meat and poultry sector, which generates $227.9 billion annually and supports over 532,000 jobs.
Senators push for expanded USDA loan access with PACE Act... Sens. John Hoeven (R-N.D.) and Amy Klobuchar (D-Minn.) reintroduced the Producer and Agricultural Credit Enhancement (PACE) Act to modernize USDA loan limits, improving access to credit for farmers and ranchers. Presented at a Senate Agriculture Committee hearing, the legislation aims to be included in the next farm bill.
The PACE Act proposes raising loan caps for the Farm Service Agency’s (FSA) Direct and Guaranteed Loan Programs, adjusting inflation benchmarks, expanding microloan limits and offering refinancing options for distressed borrowers. Supported by major agricultural organizations, the bill has a bipartisan companion measure in the House.
EPA to revise WOTUS rule for clarity and cost reduction... EPA Administrator Lee Zeldin announced the agency will revise the definition of “waters of the United States” (WOTUS) in coordination with the U.S. Army Corps of Engineers. The goal is to streamline permitting, cut compliance costs and align regulations with the Supreme Court’s Sackett v. EPA ruling. The revised rule aims to provide clarity for farmers, landowners and businesses while maintaining protections for navigable waters. The review process will include stakeholder input and prioritize state-level decision-making to balance environmental protection with economic growth.
EPA reconsiders Biden/Harris Clean Power Plan 2.0... EPA’s Zeldin announced a reconsideration of the Biden/Harris Administration’s Clean Power Plan 2.0, citing concerns over regulatory overreach and economic impact. The move aligns with the Trump administration’s broader efforts to deregulate the energy sector, ensuring affordable and reliable electricity while adhering to Supreme Court precedent. Critics of the 2024 rule argue it mirrors the previously struck-down Clean Power Plan by attempting to shift the nation’s energy mix. The decision is part of a broader push to implement President Trump’s executive orders aimed at deregulation and energy independence.
Of note: Zeldin announced the agency will undertake 31 historic actions “in the greatest and most consequential day of deregulation in U.S. history, to advance President Trump’s Day One executive orders and Power the Great American Comeback.” Through the Administrative Procedures Act, EPA is re-evaluating policies enacted last year by the Biden administration meant to reduce emissions for light, medium and heavy-duty vehicles. The estimated regulatory and compliance cost of the current rules comes to $700 billion.
USDA to reinstate fired probationary workers... USDA will comply with a Merit Systems Protection Board order to temporarily reinstate nearly 6,000 probationary employees fired by the administration. USDA will place all affected workers in pay status and provide back pay from their termination date. The employees will be reinstated for 45 days while a legal challenge to their dismissal continues. USDA is developing a phased return-to-duty plan, though the long-term status of these employees remains uncertain as federal agencies prepare for major staff reductions.
USDA, HHS advance dietary guidelines review process... Following the first meeting of the Make America Healthy Again Commission, USDA Secretary Brooke Rollins and Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. reaffirmed their commitment to finalizing the 2025-2030 Dietary Guidelines for Americans. With public comments now closed, the agencies are reviewing the prior administration’s scientific report and aim to release the final guidelines by Dec. 31, 2025. Rollins emphasized a shift away from “leftist ideologies,” while Kennedy stressed the importance of serving public health over special interests. Future improvements to the process will focus on transparency and minimizing conflicts of interest.
China challenges Canada’s tariffs at WTO... China has requested consultations with Canada at the World Trade Organization (WTO) over tariffs imposed on Chinese imports, including batteries, semiconductors, solar products and critical minerals. This follows an earlier challenge on Sept. 6 regarding Canada’s 100% surtax on Chinese electric vehicles and a 25% levy on steel and aluminum imports. The latest request resets the 60-day consultation period, marking the first step in the WTO dispute settlement process.