logo
Biden's climate-smart ag program was better than nothing. Trump killed it.

Biden's climate-smart ag program was better than nothing. Trump killed it.

Yahoo04-06-2025
The "Eating the Earth' column explores the connections between the food we eat and the climate we live in.
Farms are a huge climate problem, so it was great that the Biden administration made a huge commitment to 'climate-smart agriculture.' But some details of its first $3 billion initiative to make agriculture climate-smarter were not so great.
The Partnerships for Climate-Smart Commodities program, launched by the U.S. Department of Agriculture in early 2022, provided generous grants to America's least cash-strapped agribusinesses, including Archer Daniels Midland, JBS, Tyson, Cargill, and PepsiCo, as well as America's most influential farm groups, representing corn, soybeans, cotton, pork, and dairy. A few of its 135 projects actually looked climate-harmful, financing emissions-boosting pseudo-solutions like biofuels, manure digesters, and grass-fed beef.
Far too many grants went to scientifically controversial efforts to sequester carbon in farm soils through trendy 'regenerative' practices like planting cover crops and reducing tillage, and not enough flowed to simpler, evidence-backed strategies to reduce methane and nitrous oxide emissions. And the Biden USDA's well-intentioned efforts to make sure a large portion of the grants went to smaller farms, specialty crops, sympathetic nonprofits, and traditionally underserved communities often seemed to take precedence over reducing emissions.
I wrote a skeptical column about then-President Joe Biden's climate-smart approach back in 2022, so I had mixed feelings when the Trump administration cancelled the climate-smart commodities program this April. It was clearly a flawed program. Agriculture Secretary Brooke Rollins had a point when she mocked it as slow and bureaucratic. While her primary complaint that it didn't send enough money directly to farmers wasn't my primary complaint — USDA sends plenty of money directly to farmers! — even some Trump-hating advocates of sustainable farming agreed with her critique of its 'sky-high administration fees.'
But no one truly believes the program's cancellation had much to do with flaws in its design or execution. Its fatal flaw, from the Trump perspective, was obviously its climate-smart premise; Rollins slagged it as 'largely built to advance the green new scam,' in violation of 'Trump administration priorities.' Those priorities are not a secret: This administration doesn't believe agriculture policy should have anything to do with the climate, which is why it scrubbed the word 'climate' from USDA's website. It doesn't care that agriculture generates one-fourth of all greenhouse gas emissions.
Nobody who's concerned about the planet should be happy that an imperfect agricultural program was cancelled for the sin of trying to reduce agricultural emissions. As University of Iowa economist Silvia Secchi, one of the program's harshest critics, puts it, 'Regardless of my opinion of these grants, it makes no sense to kill them before we learn anything.' The Environmental Working Group published an analysis last year attacking Biden's climate-smart approach, but vastly prefers it to Trump's screw-the-climate approach. 'Even if we didn't love where all the money was going, it was better than just giving farmers subsidies,' says the group's Midwest director, Anne Schechinger.
When President Donald Trump commits egregious transgressions — deporting a Venezuelan hairdresser to El Salvador or investigating the mayor of Chicago for bragging about his diverse staff — pundits often try to look balanced by criticizing the suboptimal behaviors he uses as excuses: Biden neglected the border; DEI went too far. There's a reluctance to simply say: This is egregious.
Well, I spent the last six years reporting a book on how to feed the world without frying it, and I'll say this: Trump's belief that we shouldn't even try is egregious. Biden and his team deserve credit for making climate-smart a priority. Trump's USDA agreed to keep funding some of the climate-smart grants after farm groups protested their cancellation, but it's not calling them climate-smart anymore, and it won't pursue climate-smart investments in the future. It's defiantly climate-dumb.
But I've also pointed out that it's boring to harp on the badness of a climate-denial administration doing climate-denial things. And there are lessons we can learn from the politics and substance of the climate-smart partnerships — about mistakes that shouldn't be repeated, and at least one remarkable success story that should be expanded worldwide.
In my book, I tell the tale of a big internal Biden administration fight over climate-smart agriculture that never made it into the public eye.
On one side was then-Agriculture Secretary Tom Vilsack, who wanted to pay farmers to adopt regenerative practices — like keeping soils covered and minimizing soil disturbance — that he believed would sequester carbon in their soils and help reverse climate change. He loved the idea of fifth-generation Republican dirt farmers who wore John Deere hats and drove Ford F-150s embracing kinder and gentler approaches to their land that would help them earn a premium for sustainably grown commodities and sell soil-carbon credits as an extra crop.
On the other side was White House climate aide David Hayes, who thought soil carbon was wildly overhyped — by the United Nations, environmentalists, foundations who seemed to cough up cash whenever they heard the word 'regenerative,' celebrity-studded documentaries like 'Kiss the Ground,' and even Big Ag and Big Food conglomerates eager to claim climate benefits for regenerative practices in their supply chains. Hayes pushed for at least half the climate-smart grants to go to less scientifically controversial efforts to reduce methane and nitrous oxide, which make up more than half of direct farm emissions.
Hayes was right about the science. It's extraordinarily difficult to measure soil carbon accurately or ensure it remains underground. It's also extraordinarily difficult to build more soil carbon without adding more nitrogen in the form of fertilizer or manure, which have negative climate impacts of their own. Indigo Ag, a carbon-market leader that announced a plan in 2019 to help regenerative farmers sequester a trillion tons of soil carbon, has gotten less than one one-millionth of the way to that goal. Regenerative agriculture also tends to produce less food per acre, which means it requires more acres to produce the same amount of food, which means it accelerates the global march of farmland into carbon-rich forests and wetlands.
'There's just too much excitement about soil carbon,' Hayes told me.
But Vilsack won on the politics. Most of the climate-smart grants promoted regenerative practices designed to move atmospheric carbon underground and help build new markets where farmers could sell soil-carbon credits — and the same was true for another $20 billion steered toward climate-smart agriculture by Biden's Inflation Reduction Act. Cover crops and no-till were by far the best-funded practices, even though there's at best mixed evidence that they can sequester much carbon. Biden even dropped a prime-time plug for cover crops into his first address to Congress.
If USDA's soil-carbon obsession started the program on the wrong track, it strayed even further from its climate-smart mission by insisting that 40% of its grants go to underserved communities, and by promoting regenerative hemp, regenerative sorghum, and dozens of other alternatives to big row-crop commodities. Some of the resulting projects were just weird. One $20 million regenerative grant was divided among small farmers in New York, minority farmers in North Carolina, wine growers in California, and a nonprofit called Nature for Justice, as well as traditional big corn and soy producers in the Midwest and the giant agribusiness Corteva. It was hard to see a coherent strategy behind the grant, beyond spreading money across the country and checking all the Biden team's priority boxes. In any case, the Trump team has cancelled it, along with dozens of other grants that explicitly prioritized equity and diversity.
Hayes did pressure USDA to make a serious commitment to verifying actual soil-carbon results, and to his credit, Vilsack agreed, creating a $300 million monitoring fund and steering a variety of grants toward data collection and measurement. Vilsack was excited to document the climate benefits underground, while Hayes suspected the department would learn that soil carbon was mostly a mirage; either way, it would gather valuable information.
But the Trump administration is cancelling those data-focused grants, too, part of its push to scrap grants that proposed to send less than 65% of their cash directly to farmers, or had not yet sent any cash to farmers. The measurement grants generally sent more cash to scientists, universities, and companies like Indigo.
The Trump team also axed most of the grants focused on large numbers of small farms growing unconventional crops, because they required much more administration. For example, the Pennsylvania group Pasa Sustainable Agriculture lost a $59 million grant because it planned to buy supplies like cover crops and tree seedlings in bulk for 2,000 farms as small as a quarter-acre rather than giving the cash to the farmers and making them buy supplies themselves. The association's director, Hannah Smith-Brubaker, says it was finally ready to ramp up in the field after spending just $2 million of its grant over the first two years, mostly on administration and preparation — and now it won't be spending anything.
'This was supposed to be an experiment,' Smith-Brubaker says. 'We'd spend five years tackling these problems on different types of farms with different practices, and we'd start to get some comprehensive answers about what works. It's such a shame that we won't.'
Robert Bonnie, Vilsack's deputy who oversaw the grants, says there was a political strategy behind the grant program: By offering farmers carrots rather than sticks, and helping them develop markets for climate-smart commodities regardless of their personal climate views, USDA could build lasting support for evidence-based innovations in farm country. But he says he underestimated the Trump team's enthusiasm for policy vandalism, for trashing anything it could fit into its culture war against anything Biden-related or climate-related.
'It turns out there are no rules, and nothing matters,' Bonnie told me.
Again, it's not the Biden team's fault that the Trump team hates the climate. But just as many climate hawks now wish the Inflation Reduction Act's clean-energy provisions had focused more on getting green stuff built quickly, and less on requiring union labor, American-made components, and other conditions unrelated to the climate, it's tempting to wonder what the climate-smart grants could have achieved before Trump ransacked them if they had focused on delivering quick emissions-reducing results.
Actually, we don't have to wonder, because a single grant amounting to just 0.25% of the $3 billion climate-smart commodities program did exactly that.
Four years ago, when a 23-year-old finance whiz named Tyler Hull was working for a farmland asset manager in Nashville, Tennessee, he spun off a subsidiary called AgriCapture to exploit the fledgling carbon markets that were starting to reward businesses for reducing emissions. Soil carbon was all the rage, and Hull figured that if he could persuade his firm's tenant cotton and corn farmers to plant cover crops, stop tilling, and adopt other regenerative practices that would sequester carbon underground, they could sell carbon credits and the company's land would get healthier.
But once he dug into the science and mechanics of soil carbon capture, Hull concluded it was mostly bogus. He calculated that farmers could at best sequester one-fifth of a ton of carbon underground per acre, so they would earn less selling credits than they would spend on seeds for cover crops — and since tilling the soil in the future would release the sequestered carbon, the carbon-credit agreements would prohibit any tillage on the land for decades.
'It just didn't work,' Hull recalls. 'We had to pivot.'
Hull soon stumbled across an emissions-reduction opportunity that wasn't bogus at all: reducing methane from rice fields through better water management. Methane-producing microbes that thrive in flooded rice fields are responsible for 10% of the world's agricultural emissions, but reducing the duration of flooding through practices like 'alternative wetting and drying' and 'furrow irrigation' can cut those emissions in half — the equivalent of up to two tons per acre, with no drag on yield and no restrictions on future land management.
AgriCapture received a $7.5 million climate-smart grant in 2022, and it was the only project to start sending money to farmers that first year. It used remote sensing to document 30,000 tons of methane reductions on 25,000 acres, then sold the credits to an international bank. It also saved 9 billion gallons of fresh water without any loss of yield. This year, it's enrolling 150,000 acres, about 5% of U.S. rice production. The Trump administration is allowing the project to continue because it's already used most of its grant, and Hull says it will be able to keep expanding without additional federal subsidies.
If rice farmers worldwide all adopted these practices, they could eliminate enough emissions to offset half the aviation industry.
'This can become the new normal,' Hull says. 'It's practical and profitable, and even if you don't care about global warming, it's saving water and creating a new export market for American farmers: carbon credits you can trust.'
Regenerative agriculture is sexy and popular, with support from Al Gore, Joe Rogan, Rosario Dawson, the Indian mystic Sadhguru, and Robert F. Kennedy Jr., but its ability to move a lot of carbon from sky to soil remains speculative at best. By contrast, AgriCapture's effort to reduce methane by reducing flooding on rice fields is simple, effective, and potentially lucrative.
There are also proven strategies to reduce methane from cow burps with feed additives, reduce nitrous oxide emissions by using fertilizer more efficiently, and store carbon above ground by planting trees and shrubs in pastures and fields — with climate benefits that are relatively easy to measure and monetize. The Biden team could have made an international splash by bringing those strategies to scale, if it hadn't been so excited about its soil-carbon experiment.
Now that experiment is over, and that's Trump's fault.
But in the future, if policymakers who do care about climate progress want to make climate action more popular with the public, they might want to focus on actions they know will help the climate. And if those actions can create measurable environmental benefits that farmers can get paid for, they might even be popular in farm country.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump tariffs live updates: No immediate tariff pause after US-China talks; Trump says Aug. 1 deadline will stay
Trump tariffs live updates: No immediate tariff pause after US-China talks; Trump says Aug. 1 deadline will stay

Yahoo

time15 minutes ago

  • Yahoo

Trump tariffs live updates: No immediate tariff pause after US-China talks; Trump says Aug. 1 deadline will stay

President Trump said Tuesday that India may be hit with a tariff rate of 20% to 25%. The country is one of the largest US trade partners seeking an agreement ahead of Trump's Aug. 1 deadline, when nations who have not yet reached a deal will face higher tariffs. 'India has been a good friend, but India has charged basically more tariffs than almost any other country," he said. Trump on Wednesday again said he would not extend Friday's deadline for tariffs to kick in to levels outlined by deals or letters Trump has sent to country leaders. "THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!" Trump said. Trump confirmed this week that 15% represents the new tariff "floor" for countries, whose rates he has been dictating to leaders in the absence of trade deals. Meanwhile, the US and China concluded their latest round of tariff and trade talks in Sweden on Tuesday, with both sides touting progress but without an immediate announcement of a further tariff delay. Treasury Secretary Scott Bessent said President Trump would make the final call on extending the trade truce between the world's two largest economies. This week's talks were the third round for the countries, which have slowly deescalated trade tensions since Trump imposed gargantuan tariffs in April, and China reciprocated. The countries suspended those tariffs for 90 days — a suspension that is set to end on Aug. 12. Bessent said another 90-day extension is possible. Also, the US and EU are racing to lock in the final details of their major new trade deal before Friday. Top EU critics say it's a rushed fix. German Chancellor Friedrich Merz called the outcome unsatisfying and France's Bayrou dubbed the EU's "submission" a "dark day." The agreement includes a baseline tariff rate of 15% on most EU goods imported into the US. Trump called the deal 'the biggest of them all." Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Trump says Aug. 1 deadline will not be extended Two posts from Truth Social this morning: And: Harley-Davidson misses second-quarter profit estimates as tariffs weigh Motorcycle maker Harley Davidson (HOG) reported lower second-quarter profit and did not provide an annual forecast on Wednesday, as US President Trump's tariffs continued to weigh on the motorcycle maker. Reuters reports: Read more here. India eyes fall deadline for US deal amid Trump threats India has said that it will continue its negotiations with the US for a trade deal and hope one can be established by fall of 2025, despite President Trump's Aug. 1 deadline, where trading partners will face higher tariffs. Bloomberg News reports: Read more here. Luxury car brands Aston Martin and Porsche report tariff hit President Trump's tariffs have caused two automakers to either issue warnings on Wednesday or trim outlooks. British luxury carmaker Aston Martin (AML.L, ARGGY) issued a profit warning on Wednesday, citing the impact of US import tariffs and prolonged suppressed Asian demand linked to China's economic slowdown. While Volkswagen's ( VWAGY) luxury brand Porsche cut its full-year profitability target on Wednesday after the EU's trade deal with the US and reported a $462-million hit from tariffs in the first half. Reuters reports: Read more here. Trump: India may get 20% to 25% tariff but not yet final President Trump said India could face tariffs of 20% to 25%, but added the final rate isn't set yet as both countries work on a trade deal before the August 1 deadline. 'I think so,' Trump told reporters Tuesday when asked if that was a possible tariff rate for New Delhi. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. Brazil asks US to spare key food products, planes from tariffs Brazil has asked the US to spare key sectors from sky-high tariffs that will take effect on Friday. Specifically, it has asked for exemptions for food products and aircraft from Embraer, the world's third-largest planemaker. More from Reuters: Brazil is facing 50% tariffs on its exports to the US from Friday. That is among the highest rates Trump has threatened in his new round of sweeping tariffs. Those levies are coming in part because of what Trump alleges is the country's unfair treatment of its former president, who is currently on trial in the country. Read more here. US-China talks end without further pause, with Trump to make 'final call' US and Chinese negotiators wrapped up two days of talks Tuesday without an immediate announcement of a further tariff delay between the world's two largest economies as markets watch closely for an offramp to avert additional duties that could be in the offing in about two weeks' time. "We're going to head back to Washington, D.C., and we're going to talk to the president about whether that's something that he wants to do," said Trade Representative Jamieson Greer after the talks concluded in Stockholm, Sweden. "The president can make a final call," he added. Treasury Secretary Scott Bessent added Tuesday that it was "a very fulsome two days" of talks and that another 90-day pause remains on the table with the overall tone of talks being "very constructive." Trump himself was asked later in the afternoon about the chances of approval, telling reporters on Air Force One he had just spoken to Bessent and that he would decide after a briefing but that Bessent felt good about Tuesday's meeting. Read more here. US goods trade deficit hits nearly 2-year low as imports tumble The US trade deficit in goods narrowed in June to its lowest in nearly two years as imports dropped sharply. Reuters reports: Read more here. IMF edges 2025 growth forecast slightly higher, warns tariff risks still dog outlook Reuters reports: Read more here. India braces for higher US tariffs, eyes broader trade deal: Sources India is bracing itself for higher US tariffs, which will likely be between 20-25% on some exports, according to people familiar with the matter. This will be a temporary measure as it holds off on a fresh trade concession ahead of President Trump's August 1 deadline. Reuters reports: Read more here. Why markets are shrugging off lack of details in Trump trade deals The simplest reason, as explained by Siebert Financial CIO Mark Malek, is that overall progress in various trade talks suggests that worst case scenarios are being avoided "so I think for the most part we're happy." More from Yahoo Finance's Ben Werschkul: Read more here. Tariffs bleed into profits A few tariff mentions on earnings releases this morning that have caught my attention: P&G beats on earnings, warns of $1 billion tariff hit The consumer goods giant, Proctor and Gamble (PG) said on Tuesday that it will see a $1 billion hit to profits in its new fiscal year as a result of tariffs. Yahoo Finance's executive editor Brian Sozzi looks into the latest earnings report from makers of Tide and Pampers. Read more here. EU, US rush to clinch final details and lock in trade deal The EU and the US are rushing to finish a trade deal before the August 1 deadline. They want to agree on a joint statement that will allow the US to start cutting tariffs on some goods, like cars and car parts. After that, they will work on a final, legally binding deal. This will need approval from EU countries and maybe the European Parliament. The exact details are still being worked out. Some European leaders worry the deal might hurt their economies. But both sides are focused on finishing the deal soon to avoid more trade problems. Bloomberg News reports: Read more here. Trump official: More talks needed to clinch India deal The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. Rating firms say US tariffs alone will not trigger EU sovereign downgrades Reuters reports: Read more here. US trade deal eases tariff uncertainties, but risks remain: Japan Japan said on Tuesday that its trade deal with the US has removed uncertainties on but attention must be given to the risks these policies are putting on the Japanese economy. Reuters reports: Read more here. Philips soars after lifting margin outlook on softer tariff hit Royal Philips NV (PHG) stock rose 9% before the bell on Tuesday after it increased its profitability outlook as the impact of the trade war was not as severe as it feared. Bloomberg News reports: Read more here. Stellantis warns of $1.7B US tariff impact in 2025 Stellantis (STLA) shared updated first-half results after giving early numbers last week. The company said that President Trump's tariffs will cost it $1.73 billion in 2025. Yahoo Finance's senior reporter Pras Subramanian looks into the automakers earnings further and its anticipated tariff hit: Read more here. Germany's Merz says he did not expect better EU-US trade deal, German economy will suffer Germany's Chancellor released a statement saying he's not "satisfied" with the new EU-US trade deal and expressed concerns about how it'll affect his country's economy. Reuters reports: Read more here. Trump says Aug. 1 deadline will not be extended Two posts from Truth Social this morning: And: Two posts from Truth Social this morning: And: Harley-Davidson misses second-quarter profit estimates as tariffs weigh Motorcycle maker Harley Davidson (HOG) reported lower second-quarter profit and did not provide an annual forecast on Wednesday, as US President Trump's tariffs continued to weigh on the motorcycle maker. Reuters reports: Read more here. Motorcycle maker Harley Davidson (HOG) reported lower second-quarter profit and did not provide an annual forecast on Wednesday, as US President Trump's tariffs continued to weigh on the motorcycle maker. Reuters reports: Read more here. India eyes fall deadline for US deal amid Trump threats India has said that it will continue its negotiations with the US for a trade deal and hope one can be established by fall of 2025, despite President Trump's Aug. 1 deadline, where trading partners will face higher tariffs. Bloomberg News reports: Read more here. India has said that it will continue its negotiations with the US for a trade deal and hope one can be established by fall of 2025, despite President Trump's Aug. 1 deadline, where trading partners will face higher tariffs. Bloomberg News reports: Read more here. Luxury car brands Aston Martin and Porsche report tariff hit President Trump's tariffs have caused two automakers to either issue warnings on Wednesday or trim outlooks. British luxury carmaker Aston Martin (AML.L, ARGGY) issued a profit warning on Wednesday, citing the impact of US import tariffs and prolonged suppressed Asian demand linked to China's economic slowdown. While Volkswagen's ( VWAGY) luxury brand Porsche cut its full-year profitability target on Wednesday after the EU's trade deal with the US and reported a $462-million hit from tariffs in the first half. Reuters reports: Read more here. President Trump's tariffs have caused two automakers to either issue warnings on Wednesday or trim outlooks. British luxury carmaker Aston Martin (AML.L, ARGGY) issued a profit warning on Wednesday, citing the impact of US import tariffs and prolonged suppressed Asian demand linked to China's economic slowdown. While Volkswagen's ( VWAGY) luxury brand Porsche cut its full-year profitability target on Wednesday after the EU's trade deal with the US and reported a $462-million hit from tariffs in the first half. Reuters reports: Read more here. Trump: India may get 20% to 25% tariff but not yet final President Trump said India could face tariffs of 20% to 25%, but added the final rate isn't set yet as both countries work on a trade deal before the August 1 deadline. 'I think so,' Trump told reporters Tuesday when asked if that was a possible tariff rate for New Delhi. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. President Trump said India could face tariffs of 20% to 25%, but added the final rate isn't set yet as both countries work on a trade deal before the August 1 deadline. 'I think so,' Trump told reporters Tuesday when asked if that was a possible tariff rate for New Delhi. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. Brazil asks US to spare key food products, planes from tariffs Brazil has asked the US to spare key sectors from sky-high tariffs that will take effect on Friday. Specifically, it has asked for exemptions for food products and aircraft from Embraer, the world's third-largest planemaker. More from Reuters: Brazil is facing 50% tariffs on its exports to the US from Friday. That is among the highest rates Trump has threatened in his new round of sweeping tariffs. Those levies are coming in part because of what Trump alleges is the country's unfair treatment of its former president, who is currently on trial in the country. Read more here. Brazil has asked the US to spare key sectors from sky-high tariffs that will take effect on Friday. Specifically, it has asked for exemptions for food products and aircraft from Embraer, the world's third-largest planemaker. More from Reuters: Brazil is facing 50% tariffs on its exports to the US from Friday. That is among the highest rates Trump has threatened in his new round of sweeping tariffs. Those levies are coming in part because of what Trump alleges is the country's unfair treatment of its former president, who is currently on trial in the country. Read more here. US-China talks end without further pause, with Trump to make 'final call' US and Chinese negotiators wrapped up two days of talks Tuesday without an immediate announcement of a further tariff delay between the world's two largest economies as markets watch closely for an offramp to avert additional duties that could be in the offing in about two weeks' time. "We're going to head back to Washington, D.C., and we're going to talk to the president about whether that's something that he wants to do," said Trade Representative Jamieson Greer after the talks concluded in Stockholm, Sweden. "The president can make a final call," he added. Treasury Secretary Scott Bessent added Tuesday that it was "a very fulsome two days" of talks and that another 90-day pause remains on the table with the overall tone of talks being "very constructive." Trump himself was asked later in the afternoon about the chances of approval, telling reporters on Air Force One he had just spoken to Bessent and that he would decide after a briefing but that Bessent felt good about Tuesday's meeting. Read more here. US and Chinese negotiators wrapped up two days of talks Tuesday without an immediate announcement of a further tariff delay between the world's two largest economies as markets watch closely for an offramp to avert additional duties that could be in the offing in about two weeks' time. "We're going to head back to Washington, D.C., and we're going to talk to the president about whether that's something that he wants to do," said Trade Representative Jamieson Greer after the talks concluded in Stockholm, Sweden. "The president can make a final call," he added. Treasury Secretary Scott Bessent added Tuesday that it was "a very fulsome two days" of talks and that another 90-day pause remains on the table with the overall tone of talks being "very constructive." Trump himself was asked later in the afternoon about the chances of approval, telling reporters on Air Force One he had just spoken to Bessent and that he would decide after a briefing but that Bessent felt good about Tuesday's meeting. Read more here. US goods trade deficit hits nearly 2-year low as imports tumble The US trade deficit in goods narrowed in June to its lowest in nearly two years as imports dropped sharply. Reuters reports: Read more here. The US trade deficit in goods narrowed in June to its lowest in nearly two years as imports dropped sharply. Reuters reports: Read more here. IMF edges 2025 growth forecast slightly higher, warns tariff risks still dog outlook Reuters reports: Read more here. Reuters reports: Read more here. India braces for higher US tariffs, eyes broader trade deal: Sources India is bracing itself for higher US tariffs, which will likely be between 20-25% on some exports, according to people familiar with the matter. This will be a temporary measure as it holds off on a fresh trade concession ahead of President Trump's August 1 deadline. Reuters reports: Read more here. India is bracing itself for higher US tariffs, which will likely be between 20-25% on some exports, according to people familiar with the matter. This will be a temporary measure as it holds off on a fresh trade concession ahead of President Trump's August 1 deadline. Reuters reports: Read more here. Why markets are shrugging off lack of details in Trump trade deals The simplest reason, as explained by Siebert Financial CIO Mark Malek, is that overall progress in various trade talks suggests that worst case scenarios are being avoided "so I think for the most part we're happy." More from Yahoo Finance's Ben Werschkul: Read more here. The simplest reason, as explained by Siebert Financial CIO Mark Malek, is that overall progress in various trade talks suggests that worst case scenarios are being avoided "so I think for the most part we're happy." More from Yahoo Finance's Ben Werschkul: Read more here. Tariffs bleed into profits A few tariff mentions on earnings releases this morning that have caught my attention: A few tariff mentions on earnings releases this morning that have caught my attention: P&G beats on earnings, warns of $1 billion tariff hit The consumer goods giant, Proctor and Gamble (PG) said on Tuesday that it will see a $1 billion hit to profits in its new fiscal year as a result of tariffs. Yahoo Finance's executive editor Brian Sozzi looks into the latest earnings report from makers of Tide and Pampers. Read more here. The consumer goods giant, Proctor and Gamble (PG) said on Tuesday that it will see a $1 billion hit to profits in its new fiscal year as a result of tariffs. Yahoo Finance's executive editor Brian Sozzi looks into the latest earnings report from makers of Tide and Pampers. Read more here. EU, US rush to clinch final details and lock in trade deal The EU and the US are rushing to finish a trade deal before the August 1 deadline. They want to agree on a joint statement that will allow the US to start cutting tariffs on some goods, like cars and car parts. After that, they will work on a final, legally binding deal. This will need approval from EU countries and maybe the European Parliament. The exact details are still being worked out. Some European leaders worry the deal might hurt their economies. But both sides are focused on finishing the deal soon to avoid more trade problems. Bloomberg News reports: Read more here. The EU and the US are rushing to finish a trade deal before the August 1 deadline. They want to agree on a joint statement that will allow the US to start cutting tariffs on some goods, like cars and car parts. After that, they will work on a final, legally binding deal. This will need approval from EU countries and maybe the European Parliament. The exact details are still being worked out. Some European leaders worry the deal might hurt their economies. But both sides are focused on finishing the deal soon to avoid more trade problems. Bloomberg News reports: Read more here. Trump official: More talks needed to clinch India deal The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. Rating firms say US tariffs alone will not trigger EU sovereign downgrades Reuters reports: Read more here. Reuters reports: Read more here. US trade deal eases tariff uncertainties, but risks remain: Japan Japan said on Tuesday that its trade deal with the US has removed uncertainties on but attention must be given to the risks these policies are putting on the Japanese economy. Reuters reports: Read more here. Japan said on Tuesday that its trade deal with the US has removed uncertainties on but attention must be given to the risks these policies are putting on the Japanese economy. Reuters reports: Read more here. Philips soars after lifting margin outlook on softer tariff hit Royal Philips NV (PHG) stock rose 9% before the bell on Tuesday after it increased its profitability outlook as the impact of the trade war was not as severe as it feared. Bloomberg News reports: Read more here. Royal Philips NV (PHG) stock rose 9% before the bell on Tuesday after it increased its profitability outlook as the impact of the trade war was not as severe as it feared. Bloomberg News reports: Read more here. Stellantis warns of $1.7B US tariff impact in 2025 Stellantis (STLA) shared updated first-half results after giving early numbers last week. The company said that President Trump's tariffs will cost it $1.73 billion in 2025. Yahoo Finance's senior reporter Pras Subramanian looks into the automakers earnings further and its anticipated tariff hit: Read more here. Stellantis (STLA) shared updated first-half results after giving early numbers last week. The company said that President Trump's tariffs will cost it $1.73 billion in 2025. Yahoo Finance's senior reporter Pras Subramanian looks into the automakers earnings further and its anticipated tariff hit: Read more here. Germany's Merz says he did not expect better EU-US trade deal, German economy will suffer Germany's Chancellor released a statement saying he's not "satisfied" with the new EU-US trade deal and expressed concerns about how it'll affect his country's economy. Reuters reports: Read more here. Germany's Chancellor released a statement saying he's not "satisfied" with the new EU-US trade deal and expressed concerns about how it'll affect his country's economy. Reuters reports: Read more here.

First look: ArcBest Q2 earnings
First look: ArcBest Q2 earnings

Yahoo

time15 minutes ago

  • Yahoo

First look: ArcBest Q2 earnings

Trucking and logistics provider ArcBest missed second-quarter expectations ahead of the market open on Wednesday. The Fort Smith, Arkansas-based company reported second-quarter adjusted earnings per share of $1.36, which was 10 cents light of the consensus estimate and 62 cents lower year over year. ArcBest's (NASDAQ: ARCB) consolidated revenue declined 5% y/y to $1.02 billion and came in just shy of consensus. The company's asset-based unit, which includes results from less-than-truckload subsidiary ABF Freight, reported a slight y/y increase in revenue to $713 million. Tonnage per day at the unit was up 4.3% y/y as a 5.6% increase in daily shipments was partially offset by a 1.2% decline in weight per shipment. Revenue per hundredweight, or yield, was down 3.1% y/y (also off by a low-single digit excluding fuel surcharges). Comparisons to the prior year were skewed. The tonnage comp from the 2024 second quarter (a 20.3% y/y decline) was easy, while the yield comp (plus-23%) was not. The company has been taking on more freight from core accounts and using a dynamic pricing model to improve equipment utilization in down markets. Revenue per day is down 1% y/y so far in July, the result of flat tonnage and a 1% decline in yield. The month is facing a relatively easy tonnage comp from July 2024 (negative-12.5%). The company said 'LTL industry pricing remains rational' in a news release, pointing to a 4% average increase in contractual rate renewals and a new 5.9% general rate increase, which will take effect on Monday. It implemented a similar GRI last September. The asset-based unit reported a 92.8% adjusted operating ratio (inverse of operating margin), which was 300 basis points worse y/y. The OR improved 310 bps from the first quarter, which was in line with the historical sequential average change of 300 to 400 bps of improvement. Salaries, wages and benefits expenses were up 180 bps y/y (as a percentage of revenue). Rents and purchased transportation expenses were up 80 bps. The company said it expects to see roughly 70 bps of sequential OR improvement from the second to the third quarter, which is in line with historical trends. That implies a 92.1% OR for the third quarter, which would be 110 bps worse y/y. ArcBest's asset-light segment, which includes truck brokerage, reported an adjusted operating profit of $1.1 million after seven consecutive quarterly losses. The unit is expected to see breakeven results to $1 million in adjusted operating income in the third quarter. ArcBest will host a conference call at 9:00 a.m. EDT on Wednesday to discuss second-quarter results. More FreightWaves articles by Todd Maiden: Landstar reports trucking revenue growth for first time in nearly 3 years Losses mount at Pamt, TL unit posts 112.5% OR Saia beginning to shake off growing pains The post First look: ArcBest Q2 earnings appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store