U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet Chinese economic tsar He Lifeng in Switzerland for talks that could be the first step toward resolving their trade disputes.

“China should open up its market to USA — would be so good for them!!! Closed markets don’t work anymore!!!” Trump said in a Truth Social post.

“80% tariff on China seems right. Up to Scott B,” Trump said.

While Trump has on several recent occasions indicated that he expects the punitive tariff rates he has imposed on China to come down, he had not until now floated a potential figure for where they may fall to.

Stock market reacts

Following the post, U.S. stock futures dipped slightly before rising somewhat, while in Europe the U.S. dollar and European stocks also briefly weakened.

Since taking office in January, Trump has hiked levies on imports from China to 145 per cent, in addition to those he imposed on many Chinese goods during his first term and the duties levied on Beijing by the Biden administration.

China hit back by imposing export curbs on some rare earth elements and raising tariffs on U.S. goods to 125 per cent, in addition to extra levies on select products including soybeans and liquefied natural gas.

The weekend talks in Geneva have been described by Trump administration officials as a step towards de-escalating tensions with China.

— Reporting by Doina Chiacu and Brendan O’Brien

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Trump’s latest salvo was in response to the premier of Ontario’s announcement that he would place a 25 per cent surcharge on the electricity Canada’s most populous province supplies to 1.5 million U.S. homes unless Trump drops all of his tariff threats against the northern U.S. neighbor.

Ford later agreed to suspend the surcharge and meet with U.S. Commerce Secretary Howard Lutnick on Thursday, calling for cooler heads to prevail. Trump said he respected the move.

Why it matters: Dairy, a long-standing bone of contention in U.S-Canada trade relations, is once again in the spotlight.

In a post on his Truth Social media platform, Trump said he has instructed Commerce Secretary Howard Lutnick to add an additional 25 per cent tariff on the metals products from Canada that will go into effect on Wednesday morning. Tariffs totaling 25 per cent on all imported steel and aluminum products originating from other countries will start that day.

Trump lashes out at dairy

Trump further lashed out at Canada for trade protections it has in place on dairy and other agricultural products, and he threatened to “substantially increase” tariffs on cars coming into the U.S. that are set to take effect on April 2 “if other egregious, long time Tariffs are not likewise dropped by Canada.”

Ontario Premier Doug Ford was not cowed.

“We will not back down. We will be relentless. I apologize to the American people that President Trump decided to have an unprovoked attack on our country,” Ford told MSNBC after Trump’s announcement. About 1.5 million homes and businesses in New York state, Michigan and Minnesota are powered by the province’s utilities, and Trump said he would declare a national emergency to mobilize resources to assist the affected areas.

The latest escalation occurred at a time when there is effectively a power vacuum in Ottawa. Prime Minister Justin Trudeau is stepping down and is due to formally hand over power to his successor Mark Carney this week. Carney, who overwhelmingly won the leadership race of the ruling Liberals last weekend, told reporters on Monday he could not speak to Trump until he had formally been sworn in as prime minister.

Markets take more hits

Trump’s broadside delivered another painful jolt to financial markets, with the benchmark S&P 500 index sliding more than 1.0 per cent as investors worry the import taxes will hurt U.S. growth and rekindle inflation. The Toronto Stock Exchange’s S&P/TSX Composite index was down about 0.6 per cent and the Canadian dollar fell to a one-week low against the greenback.

Since hitting a record high about a month after Trump’s inauguration, the S&P 1500 index – among the widest measures of the U.S. stock market – has lost at least $5 trillion in value, a blow to wealth that could also stymie household spending.

Trump is set to meet later on Tuesday with about 100 chief executives of U.S. firms as evidence grows that his trade policies are posing a downside risk to the economy, threatening to dash a “soft landing” that until recently appeared as the base case and reignite inflation.

Whether any of them will be willing to raise such concerns directly with Trump is unknown. Ahead of the gathering, however, businesses ranging from airlines to department stores said his fast-shifting trade policies are starting to have a chilling effect across many industries, as consumers pull back on purchases of everything from basic goods to travel.

Shaky confidence

Broader 25 per cent levies on all steel and aluminum imported to the U.S. from anywhere are due to take effect early on Wednesday, and another round of tariffs on autos as well as tit-for-tat reciprocal tariffs are lined up for early April. Canada and China have retaliated with their own tariffs on U.S. exports, while Mexico stopped short of retaliation after Trump delayed his planned levies on the southern U.S. neighbor.

The metals tariffs will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. on a duty-free basis under carve-outs. Trump has vowed that the tariffs will be applied “without exceptions or exemptions” in a move he hopes will aid the struggling U.S. industries.

Trump’s promise to double the metals levies on Canada sent some aluminum prices soaring. Price premiums for aluminum on the U.S. physical market climbed to a record high above $990 a metric ton (C$1,432) on Tuesday.

Trump’s hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence in ways that economists increasingly worry could cause a recession. A small business survey on Tuesday showed sentiment weakening for a third straight month, fully eroding a confidence boost following Trump’s November 5 election victory, and a survey of households by the Federal Reserve Bank of New York on Monday showed consumers growing more pessimistic about their finances, inflation and the job market.

Reuters polls of economists last week showed risks to the Mexican, Canadian and U.S. economies are piling up amid a chaotic implementation of U.S. tariffs that has created deep uncertainties for businesses and decision-makers. The surveys showed 70 of 74 economists polled across Canada, the U.S. and Mexico judged that the risk of a recession had increased, and upside risks to inflation in the U.S. rose in particular.

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Trump was due to meet with Loeffler on Friday afternoon at his Palm Beach, Florida, residence, CNN said. Reuters was not able to confirm the report.

Trump chose Loeffler, a staunch supporter and donor, to co-chair his inaugural committee after he won the Nov. 5 U.S. presidential election.

If confirmed, Loeffler would lead a 100,000-person agency with offices in every county in the country, whose remit includes farm and nutrition programs, forestry, home and farm lending, food safety, rural development, agricultural research, trade, and more.

The nominee’s agenda would carry implications for American diets and wallets, both urban and rural. Department of Agriculture officials and staff negotiate trade deals, guide dietary recommendations, inspect meat, fight wildfires, support rural broadband, and much more.

Loeffler was appointed to the U.S. Senate seat from Georgia in 2019 to succeed former Senator Johnny Isakson, who retired. She lost it to Democrat Raphael Warnock in a special election in 2021.

During her stint in the U.S. Senate, Loeffler served briefly on the Senate Agriculture Committee.

The U.S. Senate Ethics Committee in 2020 cleared Senator Loeffler of wrongdoing in connection with stock trades, her office said, after the wealthy Republican was criticized over share sales during the coronavirus outbreak.

Loeffler and her husband’s net worth has been estimated at more than $500 million.

If confirmed, Loeffler would advise the administration on how and whether to implement clean fuel tax credits for biofuels at a time when the sector is hoping to grow through the production of sustainable aviation fuel.

The nominee would also guide next year’s renegotiation of the U.S.-Mexico-Canada trade deal, in the shadow of disputes over Mexico’s attempt to bar imports of genetically modified corn and Canada’s dairy import quotas.

Trump has said he again plans to institute sweeping tariffs that are likely to affect the farm sector.

Loeffler, then a co-owner of the women’s basketball team Atlanta Dream, came under fire in 2020 when she sent a letter to the WNBA commissioner objecting to the league’s decision to campaign for racial justice and the “Black Lives Matter” movement.

Loeffler faced months of activism from WNBA players who called for her removal from the ownership team. The team was sold in 2021.

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Biden said thousands of people with prior federal convictions could be denied employment, housing or educational opportunities and his executive action would relieve such “collateral” consequences.

Biden’s move fulfills a campaign promise and is likely to please members in his left-leaning political base ahead of the November midterm elections in which the president’s fellow Democrats are defending control of the House of Representatives and Senate.

“Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs,” Biden said.

He urged state governors to follow suit.

“Just as no one should be in a federal prison solely due to the possession of marijuana, no one should be in a local jail or state prison for that reason, either,” Biden said.

Shares of cannabis growers and sellers surged following Biden’s comments, with Tilray Brands and Canopy Growth both jumping more than 20 per cent.

The results of a classification review could have wide ramifications. Presently the drug falls under the same classification as heroin and LSD and is in a higher classification than fentanyl and methamphetamine, the president said.

If marijuana classification were to ease at the federal level, that could allow major stock exchanges to list businesses that are in the cannabis trade, and potentially allow foreign companies to begin selling their products in the U.S.

While many states have legalized the medical or recreational use of cannabis, the substance remains illegal under U.S. federal law, forcing most major banks to deny their services to cannabis-related businesses.

The issue has forced U.S. marijuana companies to trade their shares over the counter or by listing in Canada, with the Nasdaq and New York Stock Exchange prohibited from listing them.

The president’s action drew praise from some members of Congress.

“The Progressive Caucus applauds this action by President Biden today to advance criminal and racial justice,” said Representative Pramila Jayapal, who chairs a group of left-leaning lawmakers, in a statement.

Biden said he had directed Attorney General Merrick Garland to develop an “administrative process” to issue certificates of pardon to those who are eligible.

“The Justice Department will expeditiously administer the President’s proclamation, which pardons individuals who engaged in simple possession of marijuana, restoring political, civil, and other rights to those convicted of that offense,” the department said in a statement.

Biden said certain rules needed to stay in place even as regulations around the country loosened.

“Finally, even as federal and state regulation of marijuana changes, important limitations on trafficking, marketing, and underage sales should stay in place,” Biden said.

— Reporting for Reuters by Jeff Mason and Doina Chiacu; additional reporting by Noel Randewich, Shariq Khan and Richard Cowan.

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The U.S. is working with manufacturers to allow more importation of baby formula, Biden told reporters in the Rose Garden. “We’re going to be, in a matter of weeks or less, getting significantly more formula on shelves,” he said.

Food and Drug Administration (FDA) commissioner Dr. Robert Califf said earlier Friday the FDA will announce plans next week detailing how manufacturers and suppliers abroad will be able to import their products into the United States, as well as new options for U.S. companies.

The FDA is aiming for a streamlined process that will get more products on U.S. shelves while meeting safety, quality and labeling standards, Carliff said. The US$4 billion annual U.S. baby formula market is dominated by domestic producers, with imports limited and subject to high tariffs .

“Our data indicates that in stock rates in retail stores are stabilizing but we continue to work around the clock to further increase availability,” Carliff said on Twitter.

The Biden administration this week has come under increasing pressure to address the problem, which has roots in a February recall of some formulas by one of the nation’s main manufacturers, Abbott Laboratories.

U.S. agencies have been investigating bacterial infections caused by the infant formula manufactured at Abbott’s Sturgis facility in Michigan.

The U.S. Centers for Disease Control and Prevention (CDC) has now closed its investigation on Abbott’s formula, with no additional cases of infections, according to a notice posted Friday on the FDA website.

According to Health Canada, which oversaw a parallel recall of Abbott formula in the Canadian market, the recalls were based on the potential risk of contamination with salmonella and Cronobacter sakazakii. The latter is “not commonly linked to human illness (but) in rare cases it can cause serious or fatal infections.”

Many U.S. parents rely on baby formula. Fewer than half of babies born in the United States were exclusively breast-fed through their first three months, according to the Centers for Disease Control and Prevention 2020 Breastfeeding Report Card.

Abbott’s recall affected formulas, including certain Similac products, made at a Michigan plant after complaints about bacterial infections in infants who had consumed the products.

The shortages have been compounded by supply-chain snags and historic inflation, leaving about 40 per cent of baby formula products out of stock nationwide, data firm Datasembly said.

Biden met on Thursday with executives from infant formula manufacturers and retailers, pressing them to do everything possible to get families access.

Retailers said their top ask is more flexibility on the types of formula they can sell, while consumers need more flexibility on the types they can buy, particularly through the ‘WIC’ program for low-income families, the White House said.

The nutrition program for Women, Infants and Children is a federal assistance scheme administered by U.S. states. Biden told reporters retailers such as Walmart were also looking for flexibility about the amounts of formula WIC users could buy.

Abbott said on Friday it has shipped millions of cans of infant formula powder into the United States from its Ireland facility, particularly to serve consumers who use the WIC program for low-income families.

In states where Abbott has the WIC contract, the company said it will pay rebates on competing products if Similac is not available through August.

About half of infant formula nationwide is purchased by participants using WIC benefits, the White House said, and rules set by individual states have a big effect on the availability and distribution of infant formula.

“The shortage has taken an especially dangerous toll on women and children from underserved communities,” U.S. House Speaker Nancy Pelosi said.

The House of Representatives next week will bring up a bill to grant emergency authority to the WIC program to address supply-chain disruptions and recalls by relaxing non-safety-related regulations, she said in a statement on Friday.

Pelosi also said an emergency spending bill to address the infant formula shortage would advance in the House.

In other measures on Capitol Hill, the House Oversight Committee said it plans to investigate the four largest manufacturers of baby formula and seek answers on how to ramp up production and avoid any future shortage.

The committee said on Friday it sent letters seeking information to Abbott Nutrition, Mead Johnson Nutrition, Nestle and Perrigo.

The shortage poses a threat to families throughout the country, the letter said, “particularly those with less income who have historically experienced health in equities.”

Two other House committees — Energy and Commerce, and Appropriations — planned hearings on the issue.

— Reporting for Reuters by Doina Chiacu, Susan Heavey, Jeff Mason and Richard Cowan in Washington and Ankur Banerjee and Leroy Leo in Bangalore. Includes files from Glacier FarmMedia Network staff.

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President Donald Trump is committed to getting a better agreement with Canada and Mexico, White House press secretary Sarah Sanders told Fox News.

“We still want to see something happen and we’re going to continue in those conversations. They’re ongoing now and we’re pushing forward and hopeful that we can get something done soon,” said Sanders.

U.S. House Speaker Paul Ryan has said that the Republican-controlled Congress would need to be notified of a new deal by Thursday to give lawmakers a chance to approve it before a newly elected Congress takes over in January.

Sanders did not address Ryan’s timeline, but said Trump was adamant he would get a deal “that works for America.”

“He’s not going to stop until he gets it,” she added.

Mexico’s economy minister Ildefonso Guajardo reiterated that Thursday was not a feasible deadline.

“However, I would not rule out at any point, if the participants show the willingness, that we can settle this negotiation at any moment from the close of May onwards, or in June,” the minister told Mexican radio.

Guajardo said it was not yet clear when the ministers from Mexico, Canada and the U.S. responsible for negotiating NAFTA would meet again.

Ryan himself told reporters at the U.S. Capitol that Congress cannot begin working on the negotiating law known as “fast track” without a trade deal in hand.

“The point is, we can’t work a bill unless we have an agreement that’s in writing that we can work on, and that hasn’t occurred yet,” Ryan said.

Chief Mexican NAFTA negotiator Kenneth Smith said that the administration of President Enrique Pena Nieto had a responsibility to keep negotiating until Mexico’s new president, who will be elected on July 1, takes office on Dec. 1.

If a NAFTA deal is not reached before the election, Mexico’s negotiators will work closely with the incoming government’s transition team, Smith told Mexican radio.

U.S. Representative Kevin Brady, the chairman of the tax- and trade-focused House ways and means committee, said there was probably little room to go past the Thursday deadline for a deal and still get a new NAFTA approved by year end.

Leftist Andres Manuel Lopez Obrador is leading polls to win the Mexican presidential race. His pick for economy minister, Graciela Marquez, has said his administration would be willing to accept a deal struck before the election.

— Reporting for Reuters by Doina Chiacu and David Lawder; additional reporting by David Ljunggren in Ottawa, Frank Jack Daniel, Anthony Esposito and Dave Graham in Mexico City.

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The CFTC said that beginning in 2013, Cargill did not comply with regulations on thousands of complex swaps that affected hundreds of counterparties. Swaps are utilized in varying financial markets by companies to manage risk outside of futures and options markets.

Cargill, one of the largest agriculture commodities traders in the world, provided inaccurate marks that concealed as much as 90 percent of its mark-up.

Some of the swaps were based on prices derived from Cargill’s ProPricing grain program that helps farmers hedge against volatility, according to the statement.

The CFTC said Cargill used these tactics out of concern “that providing counterparties marks that disclosed Cargill’s full mark-up would reduce Cargill’s earnings,” it stated. Marks are a calculation of the value of uncleared swaps.

Cargill, in an emailed statement, admitted no wrongdoing but said it was “enhancing its internal controls and employee training programs” inside its swap dealer division.

The Wayzata, Minnesota-based company has been hit alongside rival traders by a global grain glut that has squeezed profit margins in shipping and processing crops such as corn, soybeans and wheat.

– Reporting by Doina Chiacu in Washington and Michael Hirtzer in Chicago.

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