Policy Updates | Japan softens tariff stance, India talks this week

RFK Jr. to target farm chemicals, sugar in MAHA Commission report.

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Updates: Policy/News/Markets
(Pro Farmer)

Japan softens tariff stance amid U.S./U.K. and China trade deals... Nikkei Asia reports Japan is now open to negotiating a partial reduction — not full elimination —of U.S. tariffs, signaling a notable shift in Tokyo’s trade strategy following the Trump administration’s recent deals with the United Kingdom and China. Japanese officials had initially demanded the complete rollback of U.S. duties on automobiles, steel and aluminum. However, those ambitions were tempered after observing that both the U.K. and China had accepted reduced — but not fully rescinded — tariffs in their own bilateral agreements with Washington.

The shift is partly motivated by concern that Japan could be left behind on a trade deal.

India examining U.S. request to end curbs on ethanol imports... U.S. negotiators want India to allow shipments of ethanol for blending with gasoline, people familiar with the situation told Bloomberg, a change from current rules that promote domestic supply and permit overseas purchases of ethanol only for non-fuel use. Any relaxation of rules by India, however, could undermine the country’s efforts to cut a huge energy import bill that leaves it heavily dependent on outside nations and at the mercy of fluctuating markets, the people said.

President Donald Trump has claimed India offered a trade deal with “no tariffs.”
India has reportedly offered to eliminate tariffs on 60% of tariff lines in the initial phase and provide preferential access for nearly 90% of U.S. imports. However, the most sensitive sectors, including certain agricultural products and military equipment, may be addressed in later phases.

Indian Commerce Minister Piyush Goyal is in Washington for high-level talks today through Thursday.

House Republicans advance Trump’s ‘One Big, Beautiful Bill Act’... House Republicans pushed President Trump’s ambitious legislative package — the “One Big, Beautiful Bill Act” — through the Budget Committee late Sunday night, narrowly overcoming internal party resistance.

The sweeping legislation, dubbed the “Big, Beautiful Bill” by Trump, proposes:

  • Extension of 2017-era tax cuts
  • Temporary elimination of taxes on tips and overtime pay
  • Boosted military and border security spending
  • $300 billion in cuts to SNAP (food stamps)
  • $60 billion in new farm spending
  • Reductions in Medicaid and clean energy subsidies

The bill heads to the House Rules Committee on Wednesday at 1 a.m. ET, where revisions are likely, particularly to appease moderates wary of SALT deduction limits.

House Speaker Mike Johnson (R-La.) aims to hold a floor vote before Memorial Day, but further intraparty wrangling is expected. Any changes that Johnson negotiates will come in the form of manager’s amendment that Rules will have to make in order. House Republican leadership is saying they won’t send members home for the Memorial Day recess until the House passes the reconciliation bill.

Kennedy set to target glyphosate in broader anti-toxin agenda... Health and Human Services Secretary Robert F. Kennedy Jr. is set to intensify his crackdown on environmental toxins, with a coming focus on glyphosate — the active ingredient in Bayer’s Roundup herbicide. This move follows earlier efforts to restrict food dyes and other additives he deems harmful to public health.

A forthcoming report from President Trump’s Make America Healthy Again (MAHA) Commission is expected to name glyphosate and other pesticides as major contributors to chronic disease in the United States. The MAHA Commission’s initial report, titled the “Make Our Children Healthy Again Assessment,” is scheduled for release on or before May 24 — the White House previously stated May 22. This deadline marks 100 days from the executive order that established the commission.

What Will the Report Include?

The report will focus on the root causes of America’s childhood chronic disease crisis. Its scope, as outlined in the executive order and confirmed by multiple sources, will include:

  • An assessment of the scope of childhood chronic diseases in the U.S., with international comparisons.
  • Identification and analysis of potential contributing factors, such as:
    • The American diet
    • Absorption of toxic materials
    • Medical treatments and medication overuse
    • Lifestyle and environmental exposures
    • Food production techniques and certain food ingredients
    • Government policies
    • Corporate influence or cronyism
  • Evaluation of the effectiveness of current federal programs and educational initiatives related to child health.
  • Recommendations for improving transparency in federally funded research and reducing conflicts of interest.
  • A framework for transparency and ethics review in industry-funded projects.

Specific attention to the over-utilization of medication, certain chemicals, and food ingredients, as well as the prevalence and threat posed by certain prescription drugs (e.g., SSRIs, antipsychotics, stimulants, weight-loss drugs).

A follow-up comprehensive strategy is due by Aug. 12, to outline recommended federal actions based on the assessment.

Will the Report Comment on the Use of Agricultural Pesticides?

The report is widely expected to address the potential health impacts of pesticides and other agricultural chemicals, particularly as they relate to children’s health. The commission’s mandate includes examining environmental exposures and food production techniques, which encompasses pesticide use.

Ag industry groups and lawmakers have expressed concern that the report could recommend restrictions or a “crackdown” on pesticides, reflecting Health Secretary Robert F. Kennedy Jr.’s longstanding skepticism about their safety.

There has been significant lobbying from agricultural and industry groups urging the commission to base its findings on sound science and risk-based analysis, warning against policy changes driven by activist pressure or incomplete evidence.

Will the Report Comment on Sugar?

The commission is expected to address sugar, particularly added sugar in foods and beverages. The MAHA movement and Secretary Kennedy have publicly advocated for:

  • Restricting the use of added sugar in foods, especially in federally funded nutrition programs like SNAP.
  • Supporting state efforts to ban the use of SNAP benefits for purchasing sugar-sweetened beverages.
  • Reviewing and possibly recommending changes to federal nutrition guidelines and food ingredient regulations, including those related to sugar.

Recent legislative and administrative actions, such as SNAP soda bans and new nutrition standards, have been linked to the MAHA agenda and are likely to be discussed in the report.

Of note: RFK Jr. is embracing policies and ideas that curb ultra-processed foods and discourage the use of seed oils, colorings, high-fructose corn syrup and pesticides, all of which he blames for the overall poor health of Americans. The food wing of his MAHA agenda got another boost recently with the nomination of Casey Means, a vocal critic of processed foods, as the U.S. surgeon general. Means has advocated for warning labels on ultra-processed food. President Trump touted her “impeccable MAHA credentials” when naming her to the role.

Removing seed oils from the food supply would boost the consumer price index for fats and oils by at least 29%, according to a recent study funded by the United Soybean Board and conducted by the World Agricultural Economic and Environmental Services. Organic foods were, on average, 41% more expensive than conventional products last year, according to the Organic Trade Association. Sugar is about 10% to 30% pricier than corn syrup, and beef tallow is at least double the price of soybean oil.

There is a clear tension between Kennedy’s public skepticism of pesticides and the agricultural sector’s reliance on them for productivity and affordability. USDA Secretary Brooke Rollins, representing the interests of U.S. farmers, is seen by some as a potential counterweight to Kennedy’s more aggressive regulatory stance, but her ability to moderate the commission’s direction is under scrutiny.

Sugar is emerging as a potential “sticking point” between USDA and HHS, as the MAHA agenda is expected to recommend stricter regulations on added sugars, especially in federal nutrition programs like SNAP. Rollins has been publicly supportive of American sugar producers and is recognized by the industry as someone who will “put America’s farmers first,” signaling her alignment with agricultural interests. At the same time, the MAHA movement is pushing for changes that could negatively impact sugar growers and processors, such as restrictions on sugar-sweetened beverages in federal programs and possible changes to dietary guidelines.

Bottom Line: The debate underscores a growing clash between public health reformers and agricultural stakeholders over the future of chemical use in U.S. food production. The debate now centers on how to balance the need for food production with the imperative to protect public health, as policymakers weigh potential regulatory actions and their consequences for agriculture and consumers.