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Trump creates uncertainty with timing of tariffs on Canada, Mexico... President Donald Trump says he will move forward with most of his tariff plans. “The tariffs go on, not all of them, but a lot of them,” Trump said today at the White House. However, he said the start date for 25% tariffs on Canada and Mexico would be April 2 versus a previous deadline of March 4. It wasn’t clear if Trump meant that he was giving the countries additional time to fix drug trafficking and illegal immigration, or if this timeline referenced reciprocal tariffs. A report on possible reciprocal tariffs is due at the beginning of April. A White House official said later Wednesday the deadline for Canada and Mexico tariffs remains March 4 and Trump had not yet decided whether to grant another extension.
Trump also said tariffs on items from the European Union will be “25%, generally speaking, and that’ll be on cars and all other things.” He said further details are forthcoming.
Rollins announces administration’s HPAI plan... The Trump administration is investing up to $1 billion in new funding to combat impacts of highly pathogenic avian influenza (HPAI) and soaring egg prices. The five-point plan includes up to $500 million to help U.S. poultry producers implement gold-standard biosecurity measures, up to $400 million of increased financial relief for farmers whose flocks are affected by HPAI, exploring the use of vaccines and therapeutics for laying chickens, removing unnecessary regulatory burdens on egg producers where possible and considering temporary import options to reduce egg costs in the short term.
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Argentine oilseed union threatens strike at soy processing plants... Argentina’s main oilseed union SOEA has threatened a national strike in soybean processing plants over a salary dispute at Vicentin. SOEA secretary Martin Morales told Reuters that Vicentin must pay February wages and that the potential work stoppage would also involve other unions.
While Vicentine has paused its own operations, other firms pay it rent out its facilities. After union leaders met with Vicentin executives on Tuesday, the company said it might not be able to pay worker salaries.
Morales added that after a Santa Fe court ruling last week found an agreement between Vicentin and its lenders unconstitutional, no new deals were signed for the rental of its facilities past February.
Brazil judge rejects traders’ request to halt grain export tax... A Brazilian judge has thrown out a request by global grain traders to halt enforcement of a law that imposes a 1.8% tax on the export of grains from the state of Maranhao, according to the decision seen by Reuters. Abiove, a lobby group representing grains exporters, which hoped to get an injunction against the charge, argued the state law was unconstitutional in a case filed last week. However, Judge Osmar dos Santos in Maranhao’s court of justice disagreed. He wrote the unconstitutionality “is not immediately evident” and that the claim would require further analysis. The Maranhao export tax affects shipments of grains such as soybeans, corn, sorghum and millet.
Cold Storage Report: Beef stocks climb more than average, pork stocks rise less than normal... USDA’s Cold Storage Report showed the movement of beef into frozen storage was greater than average during January. Pork stock inventories climbed less than normal during the month.
Frozen beef stocks at the end of January totaled 463.3 million lbs., up 9.9 million lbs. from December, whereas the five-year average was a 1.6-million-lb. increase. Beef inventories declined 1.3 million lbs. (0.3%) from last year and were 44.7 million lbs. (8.8%) below the five-year average.
Pork stocks at 410.2 million lbs. increased 13.7 million lbs. from December, far less than the five-year average rise of 44.7 million lbs. during the month. Pork inventories fell 53.1 million lbs. (11.5%) from year-ago and were 89.8 million lbs. (21.9%) below the five-year average.
Poultry stocks totaled 1.069 billion lbs., including 247.1 million lbs. of chicken breast meat. Chicken meat inventories increased 6.1 million lbs. from December and 11.7 million lbs. from year-ago.
Greer confirmed as USTR... The Senate confirmed Jamieson Greer to lead the Office of the U.S. Trade Representative (USTR). Greer previously told a congressional panel the office of USTR needs to explore Section 301 to combat digital services taxes, a tactic Robert Lighthizer who was USTR in Trump’s first term, took that resulted in threats to impose billions of dollars worth of tariffs. Greer said semiconductors are at the top of his list of products that need to be brought back to the U.S.
Some Democrats express concerns about recent USDA layoffs... Some Democratic senators wrote USDA Secretary Brooke Rollins expressing concerns about recent layoffs at USDA and their potential impact on services for farmers and rural communities. “These widespread layoffs jeopardize USDA’s ability to respond to the ongoing avian flu outbreak, process farm loans, disaster relief and other assistance for farmers, and distribute grants and loans for infrastructure and services that rural Americans rely on,” they wrote. Key points include:
- The layoffs, announced on Feb. 14, have affected thousands of USDA employees across various agencies and offices.
- They request detailed information on the number of employees terminated or placed on administrative leave, broken down by state, agency, job position and veteran status.
- They seek clarification on the criteria and process used for these terminations, examples of termination notices and details on any exemptions.
- They ask if any assessments have been conducted on the impact of these terminations and if any termination letters have been rescinded or employees rehired.
- They inquire about USDA’s plans to hire new employees to replace those terminated and any future plans for additional terminations.
- The Senators request responses to specific questions by Feb. 28 and March 7, emphasizing the urgency of the matter.
BP shifts focus back to oil and gas... BP announced a major strategic shift, moving away from its aggressive renewable energy targets to refocus on oil and gas production. The decision follows shareholder pressure and financial underperformance compared to competitors. Key changes:
- Renewable energy cutbacks: BP is abandoning its goal to expand renewable capacity 20-fold by 2030 and cutting renewable investments by over 50%.
- Increased fossil fuel investment: Oil and gas spending will rise to $10 billion per year and previous targets to reduce production by 25% by 2030 have been scrapped.
- Financial adjustments: Capital expenditures will be trimmed to $13-15 billion annually, with cost-cutting targets increased.
Activist investor Elliott Management is pressuring BP to enhance shareholder value. BP’s financial performance lags behind Shell and Exxon. Lower-than-expected returns from renewables was another reason, along with a broader industry trend, with companies like Shell and Equinor also scaling back renewables.
China plans $55 billion cash injection for major banks... China plans to inject billions of dollars into its banking system in the coming month as it ramps up efforts to reinvigorate its struggling economy. The government aims to dole out at least 400 billion yuan ($55 billion) of fresh capital to several of its biggest banks with the total possibly rising to as much as 1 trillion yuan, Bloomberg reported, citing people familiar with the situation. The move coincides with renewed concerns over the debt burden of China’s local governments.
The beefing up of the financial system comes after Beijing announced a range of stimulus measures last year, including cuts to mortgage and key policy rates. Major lenders have been enlisted to bolster the economy over the past few years and are now battling record low margins, sinking profits and rising bad debt.