Trump Ends Canada Trade Talks, Eyes Deals With India and China — Plus More from D.C.

This week in Washington, D.C., Senate Republicans have been working round the clock to produce their “one big, beautiful” bill and deliver a final product to President Donald Trump before Independence Day. But they’ve run into a handful of objections from the Senate parliamentarian and the workaround could have a big impact on rural hospitals. 

Meanwhile, Trump pulled the plug on trade negotiations with Canada and his team pledged to unveil new trade deals with several other countries next week. As the U.S. Supreme Court wraps up its terms for the year, justices delivered a key decision to support rural broadband funding and grain inspectors shared their views during a House Ag Committee hearing. 

1. Trump Terminates Trade Negotiations With Canada

On Friday, Trump said that the U.S. will end its ongoing trade discussions with the Canadian government over its tax on digital service and that the country can expect new duties within a week.

“[W]e are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump posted to Truth Social. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven-day period.”

The president also once again lamented the high tariffs U.S. dairy exporters face selling into the Canadian market and slammed Canada as a “very difficult country to trade with.”

2. Are New Trade Deals Coming?

Trump and Commerce Secretary Howard Lutnick said the U.S. has signed an agreement with China to finalize the implementation of a tariff understanding secured earlier this month in London. Lutnick also said that the administration is planning to unveil a raft of deals next week.

“The deals we’re going to announce are sort of the head of the class,” Lutnick said. Other countries, he said, would be grouped into “buckets.”

Countries will be able to negotiate further beyond July 9, Lutnick said, but said tariff rates will be set at that date, “and then off we’ll go.”

Trump singled out a deal with India out as a particular point of optimism.

“We have one coming up maybe with India,” Trump said. “A very big one, where we’re going to open up India.”

3. Senate GOP Scrambling to Finish Reconciliation

Senate Republicans are still working through a few major issues as they try to pass their reconciliation bill in time to make Trump’s July 4 deadline. 

They cleared one hurdle Thursday when the Senate parliamentarian officially signed off on two key Agriculture Committee provisions dealing with the Supplemental Nutrition Assistance Program. One imposes a cost-share requirement on states based on their error rates. The second cuts off benefits to immigrants who don’t have citizenship or permanent residency.

Perhaps the biggest remaining question is how the Senate Finance Committee will adjust its Medicaid proposals after the parliamentarian ruled against several provisions. Among those was a proposal to cap provider taxes, which some Republicans have opposed. Instead, they have urged Senate leadership to follow the House’s proposal on provider taxes.

4. Supreme Court Clarifies Funding Source for Rural Broadband

In a 6-3 ruling, the Supreme Court has upheld the constitutionality of the Universal Service Fund, which provides about $8 billion annually to defray the cost of broadband service for a wide range of entities, including rural hospitals and schools. The decision overturns a circuit court ruling from last year, which created a great deal of uncertainty over available funding sources for rural broadband. 

Among the groups arguing to uphold the contribution scheme was NTCA-The Rural Broadband Coalition, which said the 5th Circuit decision “threatens to undermine universal service programs that, for many decades, have served to promote the availability and affordability of critical communications services for millions of rural and low-income consumers, rural health care facilities, and schools and libraries across the nation.”

5. Grain Inspectors Need New Tools, More Flexibility

Grain inspectors need to have access to new technology, witnesses told a House Agriculture subcommittee at a hearing Thursday on reauthorization of the U.S. Grain Standards Act.

“Grain inspection has relied on the same basic technology for 100 years as the ag supply chain has become more efficient,” said Kia Mikesh, president of the American Association of Grain Inspection and Weighing Agencies. In addition, “Inspection remains reliant on an ever-shrinking pool of highly trained human inspectors.”

Kevin Donnelly, professor emeritus in Kansas State’s Department of Grain Science and Industry, said advanced imaging technology may be able to provide better results than visual inspections and could help meet future workforce challenges.

Nicholas Friant, director for raw material quality and regulatory at Cargill, spoke on behalf of the National Grain and Feed Association. 

“Let me be clear, U.S. industry strongly supports the requirement for mandatory official inspection weighing of export grain,” he said, calling it “fundamental to preserving and the credibility of our supply chain.” 

However, during natural disasters or other force majeure events, “or in rare instances where buyers and sellers mutually agree to waive inspection due to service disruptions,” the [Grain Standards] Act “must allow for pragmatic flexibility.” He recommended revisions to the law “to clarify the definition of emergency and authorize FGIS [Federal Grain Inspection Service] to issue conditional waivers.”

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