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CROP Hot Takes: 2/3/25 – Tariffs, USDA Confirmations, Update on Funding Freeze

News is coming at us hot and fast these days. Below is an update on federal actions as of February 3rd 2025 with information and analysis on the impacts to states and rural communities. The SiX ag program continues to monitor these situations and update this information as needed. If you are a state legislature and need assistance on any of these issues or others, please reach out to [email protected]

See other CROP HOT Takes from: January 28 | February 19

  • Hostile takeover of US Treasury servers, USAID 
    • The immediate and ongoing implications of unelected billionaire Elon Musk’s takeover of sensitive government offices, payment systems, and information are unclear, but it seems important to acknowledge given its magnitude. Lindsay Owens, executive director of the Groundwork Collaborative economic policy group and a former Senate senior economic policy advisor, said, “If we were watching this happen in Venezuela or Malawi and we saw a billionaire seize the money supply and the checkbook of the government, we would call it a coup.” We’ll keep you updated as more becomes clear. 
  • Tariffs paused, uncertainties remain. 
    • Trump’s threatened 25% tariffs on Mexican and Canadian goods have been paused for 30 days. If enacted, the tariffs would have an outsized impact on rural communities. Mexico, Canada and China are American farmers’ “three largest export markets.” As of yesterday (February 3rd) the 10% tariff on China has gone into effect with China immediately retaliating with sweeping tariffs. 
    • The potential impacts for agriculture and farmers: 
      • Canada is a major source of fertilizer material imports to the U.S., meaning farmers will be immediately impacted by Trump’s plans and any retaliatory tariffs the Canadian government imposes. Canada and Mexico are huge trading partners of liquors and spirits. Many of the products Canada planned to enact through retaliatory tariffs are U.S. food and agricultural products like meat, dairy, eggs (the supply and price of eggs are being heavily impacted by an Avian Flu outbreak), citrus and spices.
      • Additionally, Canada and Mexico are key partners in heavy-duty equipment manufacturing supply chains for corporations such as John Deere and Caterpillar that control much of the market for tractors and other agricultural equipment, a sector that is already heavily dominated by corporate monopolies. 
    • The Mechanism: Trump imposed the tariffs under the 50-year old International Emergency Economic Powers Act, which gives the president sweeping power to impose sanctions after declaring an emergency; however, no other administration has imposed tariffs under this act. 
    • What’s Next?: While much remains unclear, many folks in Washington are concerned that if the tariffs go into effect, Congress will need to enact billions in aid for farmers who will be particularly vulnerable to the tariffs. As POLITICO reports: “It’s not just the immediate threat of price spikes and economic losses that’s of concern. There’s also a fear that tariffs could reshape markets for decades to come.”
    • RESOURCE: For more information on what tariffs actually are and what the administration’s trade policies might actually be, check-out this resource from our partners at the Institute for Agriculture and Trade Policy.
  • USDA and HHS Secretary Confirmations
    • Don’t expect a confirmation vote for Trump’s USDA Secretary pick, Brook Rollins this week, though there seems to be little doubt that she will ultimately be confirmed with bipartisan support. This despite being unwilling to admit that climate change is caused by human actions and being noncommittal when asked whether she would undo many of the pro-competition regulations pursued under the Biden administration, as reported by POLITICO. Additionally, Rollins has indicated that she is supportive of the Make America Healthy Again (MAHA) movement championed by Robert F. Kennedy Jr. (RFK Jr.) 
    • Speaking of RFK Jr., he is currently undergoing his own confirmation process for Secretary of Health and Human Services Department (HHS) that seems to be proceeding with ease. Kennedy has a long and well-documented history of spreading misinformation and public distrust of vaccines. As Secretary of HHS, Kennedy will oversee the CDC and the FDA, providing policy direction, budgetary oversight, and coordination with other federal agencies to align public health priorities. Additionally, HHS approves key initiatives, and directs the agency’s role in national emergency responses. 80% of the CDC budget flows to states. SiX’s overview on the CDC provides further background.
  • Update on federal “Theft of Essential Services” (AKA Funding Freeze)
    • While last week’s confusing announcement from the administration to freeze the distribution of funds for essential services and programs ranging from Medicaid to SNAP was paused, many uncertainties remain. Here are some messaging resources shared from SiX’s Economic Power Project about how to talk about the administration’s theft of essential services. 
    • The effort to interrupt federal grants and loans is a blatant, intentional, and illegal act to harm and destabilize communities while consolidating power in the hands of the elite few. 
    • Messaging: Use values-informed messaging to communicate with your communities and emphasize the human impacts of these threats to popular programs. As Navigator Research framed it: “Focus on the true victims of this decision – people who depend on programs – not on the process of ‘spending freezes/pauses.’ This isn’t a ‘spending freeze,’ this is a ‘cut to programs that people depend on.’ Do not let this be a conversation about spending – make this about programs and their impact on real people.”
    • Coordination: Reach out to your values-aligned federal colleagues to identify how you can help each other protect public programs, hold billionaires to account, alert and organize your communities, and stay in alignment as autocratic attacks on our governing institutions ramp up in intensity. 
  • Federal Agency Information Scrub Continues: 
    • As of Friday last week, USDA employees have been ordered to delete landing pages discussing climate change across agency websites and document climate change references for further review, part of the administration’s attack on climate and the environment. 
    • RESOURCE: Internet Archive and others worked to archive many websites before the end of the last administration. If you’re looking for a page that’s gone dark, try going to web.archive.org and typing or pasting in the URL in the search bar. 

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The Cohort for Rural Opportunity and Prosperity (CROP) serves as a virtually convening space for legislators who are working on policies that promote healthy and thriving rural communities through ecologically and socially-responsible agriculture and local, direct-market food systems.