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U.S. pushes countries for best offers by Wednesday as tariff deadline looms... The Trump administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to trading partners seen by Reuters. The draft, from the office of the United States Trade Representative, provides a window into how President Donald Trump plans to bring to a close unwieldy negotiations with dozens of countries that kicked off on April 9 when he paused his “Liberation Day” tariffs for 90 days until July 8.
The document suggests an urgency within the administration to complete deals against its own tight deadline. While officials such as White House economic adviser Kevin Hassett have repeatedly promised that several agreements were nearing completion, so far only an agreement with the United Kingdom has been reached.
In the draft, the U.S. is asking countries to list their best proposals in a number of key areas, including tariff and quota offers for purchase of U.S. industrial and agricultural products and plans to remedy any non-tariff barriers. Other requested items include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter.
Farmer sentiment jumps to four-year high in May... Farmer sentiment in May climbed to its highest level since May 2021 as the Purdue University/CME Group Ag Economy Barometer index reached 158, 10 points higher than April and 50 points above year-ago. Farmers were more optimistic about both current conditions and their expectations for the future, driven by a more optimistic view of U.S. agricultural export prospects, combined with a less negative view of tariffs’ impact on 2025 farm income than respondents provided in either March or April. The Current Conditions Index improved by five points to 146 and the Future Expectations Index jumped 12 points to 164.
To learn more about U.S. producers’ views on trade, they were asked if they “Strongly Disagree,” “Disagree,” “Agree,” or “Strongly Agree” with the following statement: “Free trade benefits agriculture and most other American industries.” In fall 2020, an average of 49% of respondents chose “Strongly Agree” with the free trade statement. This stands in sharp contrast to the results from this month’s survey, in which only 28% of respondents chose “Strongly Agree.”
Producers were asked about the expected impact of the tariff policy on their farms’ income in 2025. In March and April, 57% and 56% of respondents, respectively, said they expected tariffs to have a “Negative” or “Very Negative” impact on their farm’s income. In May, this percentage fell to 43%, while the percentage expecting “No Impact” rose to 30%, compared to 19% and 22% in March and April, respectively.
In what could be an emerging issue, one out of four crop and livestock producers who typically hire non-family members said the Trump administration policy to reduce immigration could increase their difficulty in hiring adequate labor for their farm operation.
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Thune sets July 4 deadline for reconciliation deal... Senate Majority Leader John Thune (R-S.D.) laid out an aggressive timetable for a compromise budget bill, urging Finance Committee members to finalize a draft by week’s end to meet President Donald Trump’s July 4 signing deadline. Thune’s push signals that internal debate must end soon if legislation is to be passed on time.
Finance Committee Chair Mike Crapo (R-Idaho) is driving efforts to make three provisions of Trump’s 2017 tax law permanent — including the R&D deduction, bonus depreciation, and interest expensing — all of which expire after five years under the House-passed bill.
Key sticking points remain:
- The balance between tax and spending cuts
- Controversy over Medicaid reductions
- Fate of green energy tax credits
- Pressure to reduce the $40,000 SALT deduction backed by blue-state Republicans
The divide among Senate Republicans cuts across ideological lines: moderates object to deep Medicaid cuts, while fiscal conservatives want even steeper spending reductions. The clock is ticking, and even Trump’s full-court press, may not be enough to smooth intraparty fractures before Independence Day.
Carney’s strategic pivot to secure economic sovereignty for Canada... In a significant policy shift, Canadian Prime Minister Mark Carney is actively engaging with the nation’s oil industry to bolster economic resilience amid escalating tensions with the U.S., the Financial Times reports. Departing from his previous climate-centric stance, Carney is advocating for increased fossil fuel production coupled with emissions reduction strategies, aiming to shield Canada’s economy from potential U.S. tariffs and political volatility under a possible second term of Donald Trump.
Central to Carney’s approach is the endorsement of a “grand bargain” that seeks to balance energy expansion with environmental responsibility. This includes support for the C$20 billion ($14.6 billion) Pathways Alliance carbon capture project and a cautious endorsement of new pipeline developments. The strategy also involves appointing Tim Hodgson as energy minister and pledging to expedite project approvals, moves that have been met with cautious optimism from industry leaders.
This pragmatic pivot aims to repair strained relations with western provinces like Alberta, where separatist sentiments have been fueled by longstanding federal environmental regulations. By promoting “decarbonized” oil and gas exports and seeking new markets beyond the U.S., Carney’s administration is striving to balance environmental goals with economic growth, reinforcing Canada’s sovereignty in the face of external pressures.
Chinese firms warn EU procurement curb could hurt trade ties... A top Chinese business group has slammed the European Union’s move to limit access for Chinese medical device companies in public procurement, warning the measure could severely strain economic ties. In a strongly worded statement, the China Chamber of Commerce to the EU said it was “profoundly disappointed” by the EU’s decision, calling it a violation of the bloc’s own principles of openness and non-discrimination. The chamber, which represents firms like Bank of China, Cosco Shipping and BYD, said the action “adds new complexity” to China/EU trade relations.
Chinese Commerce Minister Wang Wentao is set to meet EU trade officials in Paris this month, and an EU/China summit is scheduled for July in Beijing. China is also trying to present itself as a stable economic partner amid frictions between Europe and President Donald Trump over tariffs and defense.
The Chinese chamber argued the EU failed to recognize that European firms have long enjoyed access to China’s medical device market. “The EU’s current decision fails to acknowledge this context and undermines the spirit of balanced engagement and mutual benefit,” it said.