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For Pepper Roberts, running a successful farm comes down to managing risk and planning for potential challenges.

While other farmers sold their crops last fall, Roberts used grain bins to store half of his corn harvest, betting that he’d get a better price once corn supplies grew scarce. 

In January, Roberts sold the corn at an inflated rate, which helped cover bills left over from last year. The funds also provided a financial buffer for the current growing season.

“The Good Lord blessed me,” said Roberts, who grows soybeans, cotton, corn and other grains on a 6,250-acre farm in Belzoni, Mississippi. “There’s opportunities out there for (every farm) — it doesn’t matter what size.”

Like many other farmers, Roberts is now preparing for a year of uncertainty and tight margins. Since returning to the White House, President Donald Trump has enacted sweeping tariffs on imported goods, igniting trade disputes and disrupting global markets. Farmers were already facing high input costs and falling crop prices entering 2025, and many relied on government aid to offset losses last year.

Despite these headwinds, however, Roberts steadfastly supports the tariffs.

“In the long run, it’s going to be the best thing that ever happened,” he said, predicting that the levies will pressure trade partners like China to negotiate new purchasing agreements with the U.S.

Roberts is not alone. Though there’s been plenty of backlash from the agricultural sector, Trump’s tariffs have also drawn support from a subset of farmers, who see them as a means of regaining an edge in an increasingly competitive global economy.

A May survey of 400 U.S. producers found that 70% believe the tariffs will strengthen their industry in the long term. The same poll found that just 43% of respondents think the levies will hurt their earnings this year, down from 56% a month earlier. Respondents were based around the country and ran operations that grossed above $500,000 annually, according to the survey authors.

Much of this support reflects the belief that the tariffs will lead to better trade deals for American farmers. China is a top destination for U.S. agricultural exports like soybeans, and getting it to buy a set amount of crops each year would guarantee a market for producers without the threat of competition, one economist explained. That certainty, in turn, would stabilize commodity crop prices.

A new trade deal with China “locks in a source of demand” for U.S. farm products, said Will Maples, a professor at Mississippi State University’s Department of Agricultural Economics.

That guaranteed demand is essential for the 10 states bordering the Mississippi River, where agriculture exports collectively surpassed $57 billion in 2023. Though some Mississippi farmers worried the tariffs could backfire and worsen market conditions, others said they would be willing to weather a difficult year or two for increased trade opportunities down the road.

“Coming into all of this, we were already facing a downturn in the ag economy,” Maples said. “(If) you think about … Trump’s base, most of these guys probably voted for him. So it seems like they are willing to give him (the) benefit of the doubt in the short term.”

A high-stakes gamble

Trump’s trade war has proven divisive for American farmers — a group that overwhelmingly backed the president during last year’s election, according to a county-level analysis by Investigate Midwest.

When the White House imposed tariffs on most foreign imports earlier this year — including a staggering 145% tax on Chinese goods — many farmers and trade groups sounded the alarm, warning that the levies would raise supply costs domestically and threaten U.S. crop sales overseas. China retaliated with its own tariffs throughout the spring, though both countries have since scaled back their steepest duties.

In May, a federal court declared many of the president’s tariffs illegal. A separate court allowed them to remain in place while the administration appeals the decision.

As of June 11, the U.S. and China have reportedly reached a tentative accord to deescalate their trade dispute without inking a significant deal. According to the New York Times, some tariffs will remain in place on both sides.   

As the administration continues to adjust the size and scope of its levies, the agricultural sector has already sustained losses. China has canceled mass shipments of American farm products, and industry groups warn that a lengthy trade dispute could further reduce demand for U.S. exports.

China has been steadily developing agricultural markets in other parts of the world, primarily Brazil, explained Mike McCormick, president of the Mississippi Farm Bureau Federation. 

“They’re developing a lot of farmland there, and (China is) buying a lot of their products,” McCormick said. 

Of particular concern to McCormick is China’s growing reliance on Brazilian soybeans, which are used as livestock feed. Soybeans remain the United States’ largest agricultural export to China, and they’re mostly grown around the Mississippi River Basin, with Illinois, Iowa and Minnesota accounting for nearly 40% of the nation’s total production in 2022. But Brazil has dominated China’s soybean import market for more than a decade.

Should Chinese demand for soybeans increase amid a prolonged trade standoff with the U.S., experts say Brazil is uniquely positioned to fill that void.

“Brazil could convert an additional 70 million acres of pasture land into crop production without knocking down a single acre of forest,” said Joe Janzen, an agricultural economist at the University of Illinois Urbana-Champaign. That’s over 80% of the total soybean acreage grown in the U.S. last year.

Proponents of Trump’s trade policies hope the tariffs will bring China back to the negotiating table, culminating in a trade deal similar to the one announced during the president’s first term.

In January 2020, Trump and China inked an agreement that called for China to purchase $80 billion in U.S. agricultural products through 2022. Crop prices soared in the next two years, though Maples at MSU stressed that market forces beyond the agreement — namely higher global spending in the latter stages of the pandemic — contributed to the increases.

The problem with Trump’s more expansive and erratic tariff strategy this time is that it risks alienating trade partners and further destabilizing markets, which in turn would drive down crop prices, Maples explained. Farmers base yearly planting decisions on what they can reasonably expect to earn for each crop, and the president’s on-again, off-again tariffs have made these projections significantly more tenuous.

“You can’t plan well when there’s so much uncertainty,” said Maples. “As long as we keep dealing with this, it’s going to be hard for prices to recover.”

Planning for pain

Roberts plans on sticking to his usual crop rotation this year despite the tariff-fueled uncertainty. The rotation has “paid for itself” in past years, he said, and he’s hoping to squeeze enough profit out of this year’s cycle to balance out expenses. He also has some savings from past years to fall back on if things go south.

“You can’t hit a grand slam every year,” Roberts said. “We all want the biggest profit we can ever make, but when I cross (the) break-even point, I’m ready to lock something in.”

Other farmers are more bearish about their prospects this season. In Clarksdale, Mississippi, Cliff Heaton has struggled to keep up with ballooning production costs on his 15,000-acre farm, where he grows cotton, corn, soybeans and other grains. Consecutive years of falling crop prices on top of high input costs created a perfect storm for Heaton, who suffered record losses in 2024. “I lost more money last year than I’ve lost in my entire life put together,” he said. “And it looks like this year’s heading in the same direction.”

Heaton said he supports the goal of securing better trade deals for U.S. producers, but he worries farmers may not survive the tariffs and their financial fallout without ample government assistance. He says recent market conditions have forced some of his friends to give up farming, and he’s considering a 40% reduction in operations if conditions don’t improve by harvest time.

“Inflation is taking its toll on us in our industry, and we’re not seeing (improvements) on our sales side,” said Heaton. He says particularly for products without a significant domestic market, like cotton, “as long as we’re dependent on selling into a world market … we need help.”

On March 18, U.S. Department of Agriculture Secretary Brooke Rollins announced that her agency would distribute up to $10 billion in subsidies to help farmers bounce back from 2024. The funds, authorized by Congress at the end of last year, have helped Mississippi farmers reduce outstanding debts and secure crop loans for the current growing season, according to McCormick.

As Trump fights to preserve his tariffs in court, McCormick said his members may be willing to “stand a little bit of pain” if the trade dispute leads to new markets. “We just gotta hope that we can get better deals and … a quick resolution,” he said.

Maples worries that pain could prove too great for some local producers, especially those who are new to the industry and lack the capital to withstand an extended tariff onslaught. The trade dispute could fast-track retirement plans for some older farmers in the state, he added.

These farm closures would have ripple effects across entire communities, affecting people and companies that rely on their business, Maples concluded.

“A bad farm economy hurts rural America at the end of the day,” he said.

Nick Judin contributed reporting.

This story is a product of the Mississippi River Basin Ag & Water Desk, an independent reporting network based at the University of Missouri in partnership with Report for America, with major funding from the Walton Family Foundation.

Wisconsin Watch is a member of the Ag & Water Desk network. Sign up for our newsletters to get our news straight to your inbox.

Trump’s tariffs are hurting US agriculture. Some farmers support them anyway. is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Left to right, Secretary of State Marco Rubio, President Donald Trump and Secretary of Defense Pete Hegseth attend a Cabinet meeting at the White House on April 30, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)

WASHINGTON — President Donald Trump’s emergency tariffs can go forward while the administration fights to overturn a lower court’s trade decision that ruled the global import taxes unlawful, according to a U.S. appeals court order late Tuesday.

The two cases filed by a handful of private businesses and a dozen Democratic state attorneys general will be consolidated and heard by a full panel of active circuit court judges in July, according to the four-page order from the U.S. Appeals Court for the Federal Circuit.

Democratic state attorneys general who brought the suit represent Arizona, Colorado, Maine, Minnesota, Nevada, New Mexico and Oregon.

The court “concludes that these cases present issues of exceptional importance warranting expedited en banc consideration of the merits in the first instance,” according to the order.

A hearing is scheduled for July 31 in Washington, D.C.

Trump rocked global markets when he imposed the wide-reaching levies on nearly every country on April 2 under an unprecedented use of the 1977 International Emergency Economic Powers Act, or IEEPA. The president walked them back just seven days later, announcing a 90-day pause on staggering tariffs that reached nearly 50% on some major U.S. trading partners.

The U.S. Court of International Trade struck down Trump’s emergency tariffs May 28. The following day, the appeals court temporarily restored the tariffs. 

Donald Trump and Elon Musk seemed like a match made in heaven as they’re both rich, egotistical billionaires that crave attention. However, they both have thin skin, a questionable definition of the truth, and a tendency to retaliate.

The latter three characteristics are now on full display as their bromance has ended in a rather public fight. Musk got the ball rolling by attacking Trump’s Big, Beautiful Bill as a “disgusting abomination.” He went on to call it a “massive, outrageous, pork-filled Congressional spending bill” … that “contains the largest increase in the debt ceiling in US history!”

More: Trump’s Tax Bill Promises Car Loan Relief But The Devil Is In The Details

Musk described it as the “Debt Slavery Bill” and urged Congress to kill it. He also told his 220 million followers on X to call their legislators as “bankrupting America is NOT ok!”

President Trump was initially quiet on the criticism, but he tore into Musk today. In a series of posts on Truth Social, Trump claimed he asked Elon to leave his administration as he was “wearing thin.” Trump also said Musk went “CRAZY” after “I took away his EV Mandate that forced everyone to buy electric cars that nobody else wanted.”

Trump then made a not so subtle threat, despite claiming “I don’t mind Elon turning against me.” In particular, he said the “easiest way to save money … is to terminate Elon’s governmental subsidies and contracts.”

That’s a rather blatant threat of retaliation and Wall Street appears to be taking it seriously. Tesla stock plummeted 14.27% today to close down $47.37 per share at $284.68.

Time to drop the really big bomb:@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.

Have a nice day, DJT!

— Elon Musk (@elonmusk) June 5, 2025

In response to Trump’s threat, Musk said SpaceX will “begin decommissioning its Dragon spacecraft immediately.” This would effectively leave NASA up a creek without a paddle, although they could use Boeing’s troubled Starliner.

Aside from that, Musk said Trump is “in the Epstein files” and claimed “that is the real reason they have not been made public.” He went on to suggest Trump’s tariffs will cause a recession in the second half of this year.

The mudslinging will likely continue for the foreseeable future, although it will be interesting to see if the two can mend fences. If not, Tesla could have just added to its increasingly complex set of challenges.

The Trump tariffs will cause a recession in the second half of this year https://t.co/rbBC11iynE

— Elon Musk (@elonmusk) June 5, 2025

New Nissan cars are driven onto a rail car to be transported from an automobile processing terminal located at the Port of Los Angeles on April 3, 2024, in Wilmington, California.  Tariffs are being levied by President Donald Trump on most foreign vehicles and auto parts.  (Photo by Mario Tama/Getty Images)

WASHINGTON — President Donald Trump’s tariffs would decrease the deficit over the next decade but overall shrink the U.S. economy and raise costs for consumers, according to a Congressional Budget Office analysis released Wednesday.

Tariffs are paid to the U.S. government by domestic companies and purchasers who buy goods from abroad.

The nonpartisan CBO found that tariffs would reduce the nation’s primary deficit by $2.5 trillion from now until 2035, plus an additional $500 million saved from avoiding even more mounting interest payments on the U.S. debt.

But the office also found that tariffs would slow down the U.S. economy over the same time, in part by affecting behavior in the private sector.

For example, businesses may pull back from investment and growth when faced with higher costs. The CBO, the official financial scorekeeper for Congress, estimates that Trump’s tariffs, as they stand now, would lower the U.S. gross domestic product, or the total value of a country’s goods and services, on average by 0.6% per year through 2035. 

In addition to increasing costs on supplies and other assets businesses use in production, the tariffs are expected to raise prices on consumer goods in the next couple years. The CBO projects the price index used to measure personal consumption will be 0.9% higher by the end of 2026.

While lower-income households spend a higher percentage of their income on consumer goods, the CBO projects that prices will increase the most on goods like home appliances and vehicles more likely to be purchased by higher earners.

The eight-page analysis only takes into account the effects of Trump’s tariffs as of May 13. These include the following taxes calculated on the value of imports: a baseline 10% on goods from most countries; a base of 30% on all goods from China and Hong Kong; 25% on most foreign vehicles and auto parts; 25% on steel and aluminum; and 25% on certain goods from Canada and Mexico.

The CBO released the figures in response to a request from U.S. Senate Democrats wanting to know the cost of the administration’s import taxes.

The report did not take into account any tariff changes after May 13, including Trump’s doubling to 50% the import taxes on steel and aluminum. The report also did not factor in changes that could result from a May 29 trade court decision striking down most of Trump’s tariffs — though an appeals court swiftly left them in place while the case plays out. 

President Donald Trump speaks to supporters during a rally at the US Steel-Irvin Works on May 30, 2025, in West Mifflin, Pennsylvania. Trump signed an order Tuesday doubling tariffs on steel and aluminum, a policy he'd announced at the Pennsylvania event. (Photo by Jeff Swensen/Getty Images)

WASHINGTON — President Donald Trump signed a directive Tuesday doubling tariffs on steel and aluminum, marking another escalation in his on-and-off policy rocking global trade.

Trump announced the increased levies to 50%, up from 25%, on steel and aluminum Friday during a visit to U.S. Steel’s Irving plant in West Mifflin, Pennsylvania, just outside Pittsburgh. The president told the crowd he would hike the tariffs to “even further secure the steel industry in the United States.”

The increase will mark the second time since Trump’s second term began that he triggered national security duties on steel and aluminum, a major import into the U.S.

White House press secretary Karoline Leavitt confirmed during Tuesday’s daily press briefing that Trump would sign the directive Tuesday afternoon. The White House published the proclamation just before 5 p.m.

The move comes as the administration presses governments around the globe to strike new trade deals before a self-imposed deadline of July 9.

That’s when Trump’s staggering “liberation day” tariffs are set to kick in again, even as the U.S. International Trade Court ruled them unlawful. A federal appeals court restored Trump’s ability to impose them while the case proceeds.

The court order only applies to Trump’s tariffs triggered under a national emergency law, and not to tariffs imposed on national security grounds to protect certain industries — meaning the increase on steel and aluminum could go forth regardless.

Trump’s back-and-forth tariffs have been seen by some allies as strong-arming. Major trading partners including Canada and the European Union expressed disapproval of the significant price hike for U.S. companies that buy steel and aluminum imports from their producers.

The U.S. is the world’s largest steel importer with the bulk coming from Canada, according to figures from the U.S. International Trade Administration. The U.S. imported 26.2 million metric tons of steel in 2024 from 79 countries and territories, according to the administration.

Canadian Prime Minister Mark Carney spoke Friday to government officials from across the country about plans to “supercharge” Canada’s economy and shield against economic fallout from U.S. tariff rates.

Canada’s steel manufacturers warned Saturday that Trump’s tariff increase will cause “unrecoverable consequences” for the industry and urged retaliatory measures, according to a statement from the Canadian Steel Producers Association.

The EU told several media outlets Saturday the bloc is planning “countermeasures” on U.S. goods by mid-July if a trade agreement cannot be reached.

The EU and Canada threatened countermeasures in mid-March after Trump hiked import taxes on steel and aluminum to 25%. 

America waited what felt like an eternity to get its hands on the electric Volvo EX30 while European reviewers raved about it, but no sooner has it arrived than the EX30 is already at risk of disappearing. Volvo’s CEO has warned that he might be forced to pull the company’s smallest EV from the market because it’s simply not economically viable to import it under current US tariffs.

Hakan Samuelsson, who has returned to head the company after a three-year hiatus, made the revelation as Trump’s 90-day tariff pause nears its end. European carmakers are preparing for the possibility of a June 1 introduction of a 50 percent levy on cars imported to the US from the region.

Also: President Trump Just Dropped A Bomb On European Car Imports

Speaking to Reuters, Samuelsson said a 50 percent tariff would “limit the ability” of Volvo to sell the EX30 in America. Although Volvo builds the bigger EX90 in the US, American-spec EX30s are built in Belgium, with the company having moved export production there from China, which led to a delay in its US arrival. The automaker is believed to be considering moving production of the EX30, and potentially the XC60, to the US.

Buyers Will Feel the Price Hike

Samuelsson was also adamant that customers and not the carmaker itself would have to soak up most of the tariff-related price increases. Unlike high-end brands like Aston Martin or Ferrari, which cater to buyers with deeper pockets and much more tolerance for sticker shock, Volvo plays in a different league. Its buyers are much more sensitive to price increases, which makes tacking on a tariff-induced markup a risky proposition.

Volvo’s expectation that car buyers will have to shoulder the burden disproves Trump’s belief that tariffs will be “eaten up” by the exporting companies and their nations.

Hoping for a Diplomatic Detour

Even so, Samuelsson seems confident that some kind of resolution will be reached between Europe and the US. Under the terms of a deal secured between the UK and the US earlier this month, Land Rover, Mini and other British brands get away with a more manageable 10 percent tariff.

Related: Volvo’s EV Crash Hits Harder Than Expected As Buyers Walk Away From Batteries

“I believe there will be a deal soon,” Samuelsson told Reuters. “It could not be in the interest of Europe or the U.S. to shut down trade between them.”

Time is running out, but the industry is watching closely. If nothing changes by next month, the EX30’s American road trip could be cut painfully short.

Subaru was slow out of the blocks when it came to adding EVs to its lineup, but now it’s wondering whether to even bother trying to catch up to rivals. The automaker revealed this week it was “re-evaluating” its electrification strategy amid a turbulent and uncertain time for the auto industry.

Also: Subaru Trailseeker Is Faster Than A WRX But No One Knows If It’s A Wagon Or SUV

Look at Subaru’s US website and you’ll find just one EV: the recently facelifted Solterra. A second, the Outback-sized Trailseeker that made its debut at last month’s New York Auto Show, is scheduled to be added to the range for 2026. But we’re unlikely to see many more EVs join it any time soon.

Tariffs and Tax Credits: The Great Unknowns

Aside from a general concern about a slowdown in the rate of EV takeup, Subaru, like every other automaker, is hamstrung by a lack of clarity from the US regarding its long term position on both import tariffs and EV tax credits. Nobody knows what the tariff situation will look like six or 12 months from now or whether tax credits will be scrapped or not.

Subaru estimates Trump’s tariffs could cost it $2.5 billion this year because, although the company does have a plant in Indiana, it only builds around half of the 700,000+ cars the brand sells in the US each year, Auto News reports. The remainder have to be imported, an d while Subaru could theoretically push the US plant’s current 345,000-unit annual capacity to 500,000, its supplier base can’t handle more than 370,000 units without a major upgrade.

Overseas Production and Shifting Plans

That means the Trailseeker will probably have to be built overseas, Auto News suggesting production will take place north of Tokyo. Subaru also had planned to create a new EV-only plant, but is rethinking that strategy, too. It now says it might have to add combustion vehicles into the mix at the new site.

Subaru execs made the admissions while announcing the company’s fiscal year financial results that revealed operating profit had dipped 13 percent to $2.7 billion. Global sales dropped 4.1 percent to 936,000 vehicles and North American deliveries slid 4.1 percent to 732,000 vehicles, though sales in Japan did climb 5.4 percent to 104,000.

In the wake of the US-China trade war, Tesla temporarily halted shipments of parts from China to the US. However, with both countries now agreeing to a 90-day truce and significantly reducing their respective tariffs, Tesla is looking to resume the import of critical components from China. Elon Musk may want to keep this news under wraps from President Trump, though, as his stance on tariffs is far from favorable.

Read: Tesla’s CyberCab Promises 300-Mile Range with Surprisingly Small Battery

An unnamed inside source told Reuters that Tesla will start shipping Cybercab and Semi parts from China at the end of this month. The electric automaker will reportedly start trial production of the Cybercab in October before moving ahead with mass production in 2026. Tesla has grandiose ambitions for the Cybercab and is betting on hundreds of thousands of units being sold in the US, forming the core of its long-awaited robotaxi service.

As the electric car maker gears up for production, many details about the Cybercab remain under wraps. What is known, however, is that the vehicle will be a compact, two-seater, completely eliminating the traditional steering wheel and pedals. Tesla is keeping specifics to a minimum, but early reports suggest the Cybercab will feature a battery pack smaller than 50 kWh, yet still offering an impressive range of approximately 300 miles (483 km).

Progress on the Tesla Semi

Production of the Tesla Semi officially began in late 2022, but progress has been slow. Full-scale production is expected to kick off next year at a new factory adjacent to the existing Gigafactory in Nevada, which will significantly expand Tesla’s production capabilities.

While Elon Musk and President Trump have found common ground on many issues in recent months, tariffs remain a notable point of disagreement. Trump has famously called tariffs “the most beautiful word to me in the dictionary,” yet Musk has long championed free trade. In fact, according to Reuters, he urged Trump to lower tariffs, though he ultimately left the decision in the President’s hands.

One of the unanticipated consequences of the tariffs was their negative impact on domestic production. Tesla’s CFO, Vaibhav Taneja, noted that the tariffs hurt the company’s US investments, as the company had to import equipment from China to expand its local production lines.

Treasury Secretary Scott Bessent prepares to testify before the Senate Finance Committee during his confirmation hearing in the Dirksen Senate Office Building on Capitol Hill on Jan. 16, 2025 in Washington, D.C.  (Photo by Chip Somodevilla/Getty Images)

The United States and China agreed Monday to lower steep tit-for-tat tariffs for 90 days, temporarily cooling a trade war but still leaving a cloud of uncertainty over businesses in the world’s two largest economies.

American and Chinese officials announced the pause will go into effect Wednesday, following talks in Geneva, Switzerland, as negotiations on a final deal continue. U.S. markets rallied following the announcement.

U.S. tariffs on Chinese goods will drop to a universal 10% baseline, down from the 145% President Donald Trump imposed last month. Trump’s previous 20% emergency tariffs announced in February on all products because of illicit fentanyl chemicals from China will remain in place, as will protective tariffs on goods still in place from the president’s first term. New duties on small packages sent to the U.S. from China, valued at less than $800, will also remain.

Fentanyl discussion

Treasury Secretary Scott Bessent said Monday that he and Chinese counterparts “had a very robust and highly detailed discussion” on preventing fentanyl and the chemicals to make the synthetic opioid from entering the U.S.

“The upside surprise for me from this weekend was the level of Chinese engagement on the fentanyl crisis in the United States. They brought the deputy minister for public safety,” Bessent said.

Bessent told reporters that overall negotiations were “always respectful.”

“We had the two largest economies in the world. We were firm — and we moved forward … We came with a list of problems that we were trying to solve and I think we did a good job on that,” Bessent said.

The White House touted the 90-day pause as a “landmark deal” in a Monday press release.

China has agreed to lower its tariffs on U.S. goods to 10%, down from 125%, according to a joint statement.

Tariffs are taxes on goods coming across the border. Companies and small businesses that import items from China must pay them to the U.S. government to receive their purchases.

Business reaction unclear

“I see the president’s approach to this as him putting a knife in your back and then pulling it out an inch and calling it a win,” said Alex Duarte, senior economist at the Tax Foundation, a think tank that advocates for lower taxation.

“Depending on the good, the rate could be close to 55%, so the tariffs on China are still pretty high. It’s hard to say how businesses are supposed to react to this because there’s so much uncertainty and the president behaves very erratically,” Duarte told States Newsroom Monday.

States Newsroom spoke to several business owners who were extremely nervous ahead of Trump’s April 2 “liberation day” tariffs. That announcement sent markets plummeting.

Marcus Noland, executive vice president and director of studies at the Peterson Institute for International Economics, said in an interview Monday the situation has “gone from OK to apocalyptic to bad.”

“It’s clearly preferable to a tariff that would have essentially ended trade between the two countries, but it’s still significantly more restrictive than where we started the year,” Noland said.

The White House released a statement Monday saying the administration will continue “working toward a rebalancing” of a trade deficit with China. In 2024, the U.S. purchased $295.4 billion more in goods from China than China purchased from the U.S.

“Today’s agreement works toward addressing these imbalances to deliver real, lasting benefits to American workers, farmers, and businesses,” according to the White House press release.

A pharmacy manager retrieves a bottle of antibiotics. (Photo by Joe Raedle/Getty Images)

WASHINGTON — President Donald Trump signed an executive order Monday aimed at lowering drug prices by pressuring pharmaceutical companies to align their U.S. pricing models with those in similarly wealthy countries.

“We’ll slash the cost of prescription drugs and will bring fairness to America,” Trump said at a morning White House event. “We’re all gonna pay the same.”

The executive order, which the White House dubbed the “most-favored-nation” policy, gives pharmaceutical companies 30 days to negotiate lower drug prices with the government.

If no deal is reached in that time, Trump said a new rule will be set so that the United States will have a price model similar to the lower rates patients abroad pay. According to the executive order, Health and Human Services Secretary Robert F. Kennedy Jr. would be responsible for the rulemaking  “to impose most-favored-nation pricing.”

“We are going to pay the lowest price there is in the world,” Trump said.

Prescription pricing for brand-name drugs in the U.S. is more than four times higher than in similar countries, according to a 2024 study by the nonpartisan research nonprofit RAND.

Clear price targets

A White House official previewing the policy in a background call with reporters Monday said the president will direct the Department of Commerce to “take all appropriate action” on countries that “suppress drug pricing abroad.”

The Food and Drug Administration will also consider expanding imports of pharmaceutical drugs from nations beyond Canada, the White House official said.

Former President Joe Biden issued an executive order to direct the FDA to work with states to import prescription drugs from Canada.

The White House official said Kennedy “will set clear targets for price reductions across all markets in the United States.”

Kennedy appeared at the White House alongside the president Monday morning.

“The United States will no longer subsidize the health care of foreign countries, which is what we were doing,” Kennedy said. “If the Europeans raise their price of their drugs by just 20%, that is tens of trillions that can be spent on innovation and the health of all people all across the globe.”

Trump said Monday the drug pricing policy would be included in the “one, big, beautiful,” reconciliation bill that is the top priority of congressional Republicans. The measure is also expected to provide tax cuts and a significant funding increase to border security.

Staff on the House Energy and Commerce Committee told reporters twice during a background briefing around the same time that most favored nation prescription drug pricing would not be in that reconciliation package.

First term

The order is similar to an effort the president made in his first term, which was struck down in federal court.

The White House official said Monday’s order is an expansion of those first-term efforts, which tried to apply the pricing model for those with Medicare – the health insurance program for those who are 65 or older and certain people under 65 who have disabilities – to 50 drugs.

“The expectation should not be that we will just be pursuing that same rulemaking,” a White House official said. “We have moved on from that for broader action.”

The pharmaceutical industry has long opposed such a move and is already bracing for the president’s planned tariffs on prescription drugs. 

More details on specific actions in Medicare will be announced later, according to a White House official.

“We will be taking action in the Medicare program if the pharmaceutical companies do not come to the table and lower their prices across markets,” the White House official said.

Effort unserious, leading Democrat says

U.S. Senate Finance Committee ranking member Ron Wyden, Democrat of Oregon, slammed Monday’s executive order.

“If Trump was serious about lowering drug prices, he would work with Congress to strengthen Medicare drug price negotiations, not just sign a piece of paper,” Wyden said.

The Inflation Reduction Act that Democrats passed along party lines in 2022 when they held unified control of Washington allowed for drug negotiating pricing that aims to lower drug costs for those with Medicare.

“Democrats took on Big Pharma and won by finally giving Medicare the power to negotiate lower drug prices on behalf of seniors and capping their out-of-pocket costs for expensive prescriptions,” Wyden said, referring to the law.

Jennifer Shutt contributed to this report.

Automakers across the industry are scrambling to navigate Donald Trump’s tariffs, and some are getting particularly creative in their strategies. Rivian, for example, has apparently taken a refreshingly proactive stance. Sources with knowledge of the situation say the automaker is sitting on a stockpile of batteries that it’s been buying up since before the election even happened.

According to a Bloomberg report, Rivian made a savvy move by locking down a stash of lithium iron phosphate (LFP) cells from China’s Gotion High-Tech Co. well before the election, with the goal of powering its Amazon-bound delivery vans. After the political dust settled, the company then teamed up with Samsung SDI to import a sizable batch of battery cells from South Korea, hoping this would keep production rolling for its R1T pickup and R1S SUV models.

Read: Trump Eases Auto Tariffs With 85% Rule While Buyers Brace For Sticker Shock

The strategic move serves as a buffer against potential pricing pressures induced by Trump’s new tariffs. While recent revisions to the tariff plan offer some relief, they still pose significant challenges for automakers relying on international supply chains. That can heavily impact companies like Rivian who need to import batteries to make every vehicle in their lineup. Notably, Samsung SDI said a week ago that the tariff war would make it more expensive to build EVs.

For now, Rivian has bought itself a little more breathing room before it has to worry about raising prices. In the meantime, it’s also gearing up for the launch of its smaller R2 SUV. With this new vehicle, the company plans to switch to 4695-format cells from LG Energy Solution. The initial production will take place in Korea, but Rivian has plans to move operations to LG’s new Arizona facility in Queen Creek. Even without the tariff issues, that move helps Rivian better align with the Inflation Reduction Act’s requirements.

Whether this is a stroke of logistics genius or just plain survival instinct depends on how you read the political winds. Either way, Rivian’s battery strategy gives it a short-term cushion while it scrambles to localize its supply chain before the tariffs squeeze even tighter. Of all the different strategies we’ve seen automakers employ, this is the first time one has proactively bought up supplies to this degree. 

In the end, Rivian’s proactive approach might just be the thing that keeps it on track, at least until the tariff storm blows over.

Party hats were compulsory headgear at VW’s Zwickau plant in eastern Germany this week. The factory produces six different EVs for various VW Group brands and just built its millionth electric car, an ID.3 GTX hot hatch. But Zwickau’s busy production lines are causing a headache for the bean counters at VW’s Wolfsburg HQ.

The problem is that EVs are expensive to build and deliver smaller margins than equivalent combustion-powered cars. And while electric sales doubling in Europe in the first quarter of 2025 is something to celebrate, some of those sales come at the expense of ICE sales.

Related: VW ID.2 Might Have A Shot In America, But ID.1 Is ‘Highly Unlikely’

As EVs take up a greater proportion of the sales mix – they accounted for one in five VW Group cars in Jan-March – they push profitability down, reducing the margin to 4 percent. And the withdrawal of EV subsidies in many European countries means VW can’t lean on government incentives to allow them to charge more.

But there is light at the end of the tunnel in the form of the VW ID.2 and its various spinoffs and related EVs. The €25k ($28k) ID.2, which will be built in Spain, goes on sale in 2026 and should be one of the first Western-built EVs to return margins close to an ICE car’s. The baby VW and its sister SUV, plus the Cupra Raval and Skoda Epiq use a new front-wheel drive version of the MEB platform that costs less to produce.

Earlier this month VW revealed that earnings before tax were down 40 percent to €3.1 billion ($3.5 bn) in Q1 even as deliveries increased by 1.4 percent. The company’s finance chief Arno Antlitz partly attributes this to EVs taking a bigger slice of the sales pie.

But President Trump’s tariffs threaten to throw an even bigger spanner in the VW Group’s plans. The constantly-changing US import tariff situation is making it harder for automaker to make financial forecasts for the rest of the year, but VW, which is badly exposed due to Audi and Porsche’s lack of US production sites, has already downgraded primed investors to expect a less successful year than previously anticipated.