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Pesticides take center stage in Senate hearing... Some Republican senators and farm groups are worried about a report from the Make America Healthy Again Commission (MAHA) Commission that could attack modern farming techniques. Health and Human Services Secretary Robert F. Kennedy Jr. says he will release the report on Thursday.
Kennedy testified this morning before the Senate Appropriations Labor, Health and Human Services, Education and Related Agencies Subcommittee, focusing on what he called the role of environmental toxins in driving chronic disease. Central to his testimony was glyphosate, the active ingredient in Bayer’s Roundup weed killer, which Kennedy claims is a top contributor to America’s chronic health crisis. Kennedy emphasized the widespread use of glyphosate worldwide and linked it to rising rates of chronic illness.
Critics of Kennedy’s stance warn that sweeping restrictions on pesticides could severely disrupt the U.S. food supply chain, affecting both farmers and consumers. Nonetheless, Kennedy and his supporters argue that addressing environmental toxins is foundational to improving national health outcomes. Bayer defends the herbicide as both essential and rigorously tested for safety.
Kennedy denied any bias and maintained that any future action would be based on science and public health outcomes, not politics. But the clash signals growing friction between the administration’s health goals and the interests of rural and agricultural constituencies.
Sen. Chuck Grassley (R-Iowa) has also raised concerns about the possible findings of the MAHA Commission. He joined a group of Republican senators and representatives in sending a letter (link) to Kennedy urging the commission to use “sound science and risk-based analysis in its policy decisions, particularly on crop protection tools and food-grade ingredients.”
As we noted in “First Thing Today” this morning, major agriculture groups released a statement on Tuesday echoing major concerns with what the coming MAHA Commission report will contain.
Brazilian chicken exporters brace for cargo rejections... Some countries, including China, will not accept chicken shipments in transit from Brazil following confirmation of the country’s first highly pathogenic avian influenza (HPAI) outbreak, said Brazilian meat lobby ABPA, which represents large food processors. ABPA president Ricardo Santin told Reuters the rejection of cargoes may vary according to the date of shipment before outbreak’s confirmation, ranging from 14 to 28 days at the discretion of the destination countries’ official veterinary services. He noted it is up to the exporting companies to deal with returned cargoes, adding they also have the possibility of redirecting some shipments.
The easing of restrictions for cargos in transit is a possibility, Santin said, particularly if it comes from a region far away from the outbreak in Rio Grande do Sul state.
Brazil accounts for 39% of the global chicken trade, Santin said.
UBS, JPMorgan warn of historic tax impact from tariffs... In a note to clients, UBS economists reported that following the May 12 tariff truce with China, the average U.S. tariff rate jumped to 15%, up sharply from 2.5% in January. This increase, they estimate, would lift notional federal revenue from $80 billion to $490 billion, equating to a tax hike of about 1.5% of GDP — the largest since 1982, according to earlier calculations by JPMorgan. “On a notional revenue basis, that would be an increase from $80 billion to $490 billion,” UBS wrote.
Despite the potential fiscal weight of the tariffs, they are excluded from official cost estimates of the House GOP’s proposed tax package, which the Yale Budget Lab priced at $3.4 trillion over 10 years. When factoring in new tariff revenues, that number drops significantly to $913 billion. But under reconciliation rules, tariffs — imposed solely through presidential authority — aren’t included in bill “scoring.”
Key reasons tariffs are ignored in budget debate, according to a Bloomberg assessment:
- Not legislated: Congressional Republicans chose not to codify Trump’s tariffs, keeping them outside of formal budget scoring rules.
- Unpopularity: Polling shows tariffs are politically risky, with widespread consumer unease about rising prices.
- Volatility: Trump’s unpredictable rate adjustments undermine long-term revenue reliability.
- Economic drag: Tariffs are hurting business confidence. An Atlanta Fed survey last week showed executives plan to cut hiring by 13% and reduce investment by 16%. “Tariffs may prove to be an unreliable source of revenues… if they work as intended, imports will dry up,” the report cautions.
Bottom line: As economists warn of slower growth and lower tax revenues from non-tariff sources, two competing forces now define the fiscal outlook: how much drag the tariffs will create versus how much stimulus the GOP tax bill might provide. Congress, so far, appears unwilling to connect the two.
Rollins unveils ‘farmers first’ agenda to revive small family farms... The first slate of policy proposals under the Make Agriculture Great Again initiative was unveiled Monday by USDA Secretary Brooke Rollins, including a sweeping “Farmers First: Small Family Farms Policy Agenda” aimed at revitalizing America’s small-scale agriculture. After a national listening tour that included hundreds of on-the-ground conversations with farmers, Rollins emphasized that 86% of U.S. farms qualify as small family farms — and they need urgent support to survive and thrive. “America’s family farms help feed, fuel, and clothe the world, but they also face some of the greatest challenges in getting their farms started and keeping them running,” said Rollins. “Putting Farmers First means removing roadblocks, not building them.”
USDA’s new policy platform outlines a targeted set of actions, including:
- Streamlining USDA applications to be simple, transparent and farmer-focused.
- Improving access to reliable credit and ensuring farmland stays in production.
- Enhancing succession planning so farms can be passed on to future generations.
- Modernizing USDA definitions to reflect current realities of farm size and operations.
- Expanding risk management tools, education and local market access.
- Pursuing labor and regulatory reforms to reduce burdens on producers.
“Today’s policy agenda is tailored specifically to support small-scale farms to thrive for generations to come,” Rollins said. “President Trump knows America’s economic prosperity depends on the success of our farmers and ranchers.”
USDA says additional measures under the Make Agriculture Great Again initiative will follow in the coming months.
FT looks at how Trump’s trade deals could reshape the global economy... President Donald Trump’s recent trade policies have unleashed seismic forces that are set to transform the global economy, accelerating a move away from neoliberalism and toward de-globalization, the Financial Times (FT) reports. It says the new wave of tariffs and trade agreements marks a decisive shift toward regionalization, with the U.S. increasingly prioritizing its own interests and challenging the established global trading order.
Key Impacts of Trump’s Trade Deals
The Trump administration has imposed a sweeping 10% tariff on imports from a wide range of countries, targeting what it calls the “worst offenders” in trade fairness. These tariffs are being rolled out in stages.
The immediate fallout has been significant market volatility. Following the announcement of new tariffs, U.S. stock indices experienced sharp declines, entering correction and bear market territory. This turbulence has led major companies to delay IPOs, and mergers and acquisitions activity has slowed, raising concerns about broader economic growth.
Major trading partners, including China and EU, have responded with their own retaliatory measures.
The inflationary impact of these tariffs is expected to be more persistent than initially thought. Federal Reserve Chair Jerome Powell has warned that the new tariffs could result in higher prices for everyday goods and slower economic growth, with the effects potentially lasting longer than anticipated.
The tech sector is particularly vulnerable, according to the FT item, with analysts warning that tariffs could drive up the cost of products like smartphones and consumer electronics, potentially leading to widespread price increases and economic disruption.
A Broader Shift in Global Trade
Trump’s approach signals a broader retreat from globalization, with the U.S. moving toward a more protectionist and transactional stance in its trade relationships. This is likely to result in:
- Increased regionalization, as countries seek to form smaller, more localized trade blocs in response to U.S. policies.
- Heightened uncertainty for multinational businesses, which must now navigate a more fragmented and unpredictable global trade environment.
- Potential long-term consequences for global supply chains, investment flows, and economic growth, as the world adapts to a less integrated trading system.
FT’s bottom line: Trump’s trade deals are not just short-term policy shifts but represent a fundamental reordering of global economic relationships, with far-reaching implications for businesses, consumers and governments worldwide.