U.S./China diplomatic call marks renewed trade dialogue but frictions remain... The U.S. and China held a high-level call on Thursday — the first since their Geneva meeting earlier this month — signaling momentum in efforts to stabilize bilateral trade relations. U.S. Deputy Secretary of State Christopher Landau and Chinese Vice Foreign Minister Ma Zhaoxu discussed a range of issues, though official readouts didn’t specify whether tariffs were addressed.
The renewed communication channel, established during the Geneva talks, is seen as a “positive sign,” especially after both countries issued a rare joint statement there to temporarily ease tariffs.
The conversation follows China’s meeting earlier this week with newly appointed U.S. Ambassador David Perdue, where Trump administration priorities — especially opening Chinese markets and curbing fentanyl precursor exports — were emphasized. Perdue said he looks forward to delivering “concrete outcomes” for Americans.
But frictions remain. Chinese officials criticized a recent U.S. advisory discouraging use of Chinese-made AI chips, calling it “unilateral bullying.”
FT: USTR to tell EU counterparts offer falls short... U.S. Trade Representative Jamieson Greer is preparing to inform European Trade Commissioner Maros Sefcovic that the latest EU proposal for resolving transatlantic trade tensions does not meet U.S. expectations, the Financial Times reports. At the heart of the dispute, Washington is demanding the European Union make unilateral tariff reductions on American goods, warning that without such concessions, negotiations to avoid an additional 20% in “reciprocal” duties will stall.
The U.S. has rejected a recent “explanatory note” from Brussels, arguing it falls far short of what Washington expects, according to sources cited by the Financial Times. The EU, for its part, has pushed for mutual tariff reductions and a jointly agreed negotiation framework, but has refused to lower tariffs independently — a step some other U.S. trading partners have taken to defuse tensions.
The U.S. is also frustrated the EU has left its digital tax policy off the negotiation table, despite U.S. insistence that it be addressed as part of any broader deal. Talks are ongoing, but insiders say the exchange of documents has yielded little real progress, with one source telling the FT, “Exchanging letters is not real progress. We are still not really getting anywhere.”
The current standoff comes after the U.S. imposed 25% tariffs on EU cars, steel and aluminum in March, followed by 20% tariffs on other EU products in April. The 20% rate was halved until July 8 to allow for a 90-day negotiating window. In response, the EU has suspended tariffs on €23 billion (nearly $26 billion) worth of American goods but is preparing a retaliation list covering €95 billion ($107.35 billion) more, including major U.S. exports like Boeing planes and bourbon whiskey, should talks collapse.
Both sides claim to want a “fair and balanced” outcome, but the U.S. is dangling the threat of broader tariffs on European products, including pharmaceuticals and semiconductors, if its demands are not met. The EU, meanwhile, is wary of what it sees as a U.S. “go-it-alone” approach and is ready to resume countermeasures if negotiations fail.
The next meeting between Greer and Sefcovic in Paris is seen as a potential turning point in the escalating trade dispute.
Senate eyes overhaul of Trump’s House-passed tax bill... After the House narrowly passed President Donald Trump’s sweeping tax and spending bill, Senate Republicans quickly signaled they intend to rewrite major sections. Key Senate Republicans raised concerns about provisions including Medicaid cuts, a broader state and local tax (SALT) deduction, and steep rollbacks of clean energy credits. Some senators want deeper deficit reductions, while others warned against moves that could harm rural hospitals and reduce health coverage.
While the House bill poses a significant threat to the Inflation Reduction Act’s climate provisions, analysts expect Senate revisions to soften the blow.
Waiver allows Iowa, Indiana to bar junk food from SNAP... USDA Secretary Brooke Rollins has signed waivers permitting Iowa and Indiana to restrict the use of Supplemental Nutrition Assistance Program (SNAP) benefits for certain processed foods and sugary beverages. This move, announced during a White House event marking the release of the Make America Healthy Again (MAHA) Commission report on Thursday, follows the recent approval of a similar waiver for Nebraska.
The Iowa and Indiana waivers, which are not yet posted on the USDA’s public waiver tracker, will allow these states to bar SNAP recipients from purchasing certain items. The Nebraska waiver, effective Jan. 1, 2026, specifically excludes all sodas and energy drinks from SNAP purchases for a two-year period.
These waivers are part of a broader federal push, led by the Trump administration and the MAHA Commission, to encourage healthier eating among SNAP recipients and address rising rates of chronic disease, especially among children. Secretary Rollins has called on other governors to submit similar waivers, framing the initiative as an opportunity for states to innovate and serve as “laboratories of innovation” in nutrition policy.
SCOTUS weighs new challenge to California’s Prop 12... The U.S. Supreme Court is actively considering whether to rehear a legal challenge to California’s Proposition 12, the state law that bars the sale of pork from animals not raised under strict welfare standards. The latest petition, Iowa Pork Producers Association v. Bonta, asserts that Proposition 12 unlawfully discriminates against out-of-state pork producers and violates the dormant Commerce Clause. The case has been relisted for discussion at an upcoming Supreme Court conference, signaling heightened interest among the justices.
The American Farm Bureau Federation and NPPC lost their prior Supreme Court challenge to California’s Proposition 12 because the Court found the law was not protectionist, did not impose a substantial burden on interstate commerce, and that resolving such policy disputes is the responsibility of Congress, not the judiciary. The justices made clear that if agricultural interests seek relief, they should pursue a legislative solution rather than further litigation. Justice Brett Kavanaugh offered suggestions — effectively a “road map” — for how future challenges to California’s Proposition 12 or similar state laws might succeed where the American Farm Bureau Federation and NPPC failed.
Justice Kavanaugh suggested that future litigants could:
- Present more robust factual allegations to meet the “substantial burden” requirement under the dormant Commerce Clause.
- Explore alternative constitutional arguments under the Import-Export Clause, the Privileges and Immunities Clause, and the Full Faith and Credit Clause.
- Consider the broader implications for federalism and interstate commerce, potentially prompting congressional action.
Of note: On the legislative front, at least one bill — the Ending Agricultural Trade Suppression (EATS) Act — was introduced in Congress as a potential solution, and the issue could be addressed in the pending farm bill.
FDA, USDA take cautious path on HPAI vaccination... In a unified message to Congress, FDA Commissioner Marty Makary and USDA Secretary Brooke Rollins stated that HPAI vaccines will not be mandated for poultry at this stage. Speaking during a Senate hearing on the FDA budget, Makary warned against intervening too soon, noting that “we need to wait until we see human-to-human transmission” before pursuing strain-specific vaccines. Rollins echoed this caution, emphasizing that vaccination is “off the table” for now. Instead, USDA is directing its $1 billion response strategy toward biosecurity, surveillance and limited vaccine research — with $100 million earmarked for that effort. USDA’s strategy focuses on containment and prevention through farm-level defenses and farmer support. Officials worry vaccines could obscure viral circulation, disrupt trade or accelerate viral evolution.