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Trump tariffs live updates: Trump threatens 5% Mexico tariff increase; US unveils $12B bailout for US farmers as tariffs bite
Yahoo Finance Updated
Tue, December 9, 2025 at 4:42 AM EST
3 min read
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President Trump on Monday unveiled $12 billion in aid to US farmers, as the agricultural sector deals with the fallout from his sweeping tariff policies. Trump and other top administration officials discussed the package at a roundtable event with farmers at the White House.
The sector has been hit particularly hard from the president's ever-changing trade policies, as they have struggled to sell crops and been hit by higher costs. Soybean exports have come in particular focus, with trade slowing to a crawl as China virtually halted its purchases before the countries agreed to a trade truce in October.
Trump said the money for farm relief would come from a "small portion" of tariff-related revenues.
The farm bailout comes as US Supreme Court is poised in the weeks ahead to decide the legality of the majority of President Trump's tariffs. The president invoked the International Emergency Economic Powers Act (IEEPA) to levy blanket tariffs on goods from other countries. But Congress is the branch of the US government with oversight of taxation and spending — not the president.
As he has publicly braced for the high court's decision, Trump has claimed the "full benefit" of tariff policies would take effect soon, arguing that foreign buyers who stockpiled inventory would be forced to buy more goods. Meanwhile, Trump has asked the Department of Justice and the Federal Commission to investigate the US food supply chain for possible price fixing to drive up costs of goods such as meat, especially by foreign companies.
The push to reduce food prices comes after electoral wins for Democrats across a number of key state and local races where candidates stressed affordability concerns. Trump has also in recent weeks floated the possibility of a tariff "dividend" for many Americans in the form of a $2,000 check.
Read more: What Trump's tariffs mean for the economy and your wallet
What else to know about Trump's tariffs:
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Trump has threatened to impose an additional 5% tariff on Mexico on Monday if it doesn't provide additional water to help US farmers. Trump accused Mexico of violating the Utilization of Waters of the Colorado and Tijuana Rivers and of the Rio Grande treaty. Trump posted: "As of now, Mexico is not responding, and it is very unfair to our U.S. Farmers who deserve this much needed water."
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Trump gave the greenlight on Monday for Nvidia (NVDA) to sell some of its more powerful H200 chips to China. The US president said that China's Xi Jinping had responded "positively" to the move.
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China's trade surplus in goods exceeded $1 trillion for the first time this year, meaning it exported more goods to other countries than it imported. Its shipments to the US, however, dropped 29% amid trade war between the two nations.
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US Trade Representative Jamieson Greer told Politico that Trump is considering exiting the United States-Mexico-Canada Agreement (USMCA). Currently, under the USMCA, both Canada and Mexico pay little to no tariffs on products that meet the agreement's rule of origin.
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Several US companies, such as Costco (COST), have filed lawsuits and claims to the US government for tariff refunds in the belief Trump's tariffs will be struck down by the US Supreme Court. If the courts rule against Trump's tariffs, the president may be forced to repay billions of dollars in collected revenue from imports, according to a report in the New York Times.
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Today at 9:05 AM UTC Jenny McCall
Trump threatens Mexico with 5% tariff increase over water dispute
President Trump threatened Mexico on Monday with an additional 5% tariff over what he calls unfair treatment of American farmers.
Trump posted on Truth Social, saying that Mexico is violating its water treaty with the US, hurting Texas farmers' ability to nourish their crops and livestock.
“As of now, Mexico is not responding, and it is very unfair to our U.S. Farmers who deserve this much-needed water,” Trump posted Monday. “That is why I have authorized documentation to impose a 5% Tariff on Mexico if this water isn’t released, IMMEDIATELY.”
The treaty Trump is referring to is the Utilisation of Waters of the Colorado and Tijuana Rivers and of the Rio Grande, signed in 1944.
This 5% tariff would be in addition to the 25% duties that Trump imposed on Mexico this year.
Bloomberg reports:
Trump’s tariffs are not reducing the trade deficit
One of the key questions being asked is whether President Trump's tariffs are helping to close the trade deficit. For the FT's senior trade writer Alan Beattie, the answer is no.
The FT reports:
Chinese premier cites damage from US tariffs, as China's surplus surpasses $1T
China's Premier Li Qiang said on Tuesday that tariffs have dealt a "severe blow" to global economies. These latest remarks from Beijing come as China's trade surplus surged past $1 trillion.
The AP reports:
Trump approves Nvidia H200 chips for sale to China
Nvidia (NVDA) has been given the go-ahead by President Trump to sell some of its more powerful H200 chips to China.
Yahoo Finance's Technology Editor Daniel Howley reports on the latest developments surrounding Nvidia's chip sales to China.
Trump eyes tariffs over Canadian fertilizer, Indian rice
US, India seek to reset ties as trade deal remains elusive
Hints that the US and India are on the verge of restarting trade talks emerged on Monday as two separate US delegations arrived in New Delhi this week to hold discussions with their Indian counterparts.
Bloomberg News reports:
- Today at 1:35 AM UTC Kim Lyons
Lawmakers in Mexico consider hiking tariffs on goods from China and other Asian countries
With the US-China trade war continuing apace, the Mexican government will debate tariffs of its own this week, as it considers a proposal before the legislative assembly to raise tariffs on products from China and other Asian countries — including South Korea, Thailand and India — by as much as 50%, Reuters reports.
Cars, textiles, clothing, plastics and steel are among the products coming into Mexico that may see new or higher levies if the bill were to pass.
Along with China, Mexican business groups strongly oppose such legislation. But there is a sense of urgency to pass the bill before the end of the congressional session on Dec. 15.
- Mon, December 8, 2025 at 9:36 PM UTC Kim Lyons
Trump unveils $12 billion aid package for farmers struggling with tariff impacts
President Trump unveiled a $12 billion farm aid package aimed at helping American farmers who have been hard hit by the ongoing trade war with China, which has left them dealing with higher costs and difficulties selling their crops.
As the Associated Press reports, many farmers are Trump supporters, at least when it comes to his politics. However, the fluctuating tariff rates Trump has implemented leave farmers who raise cattle and grow crops such as corn, cotton, sorghum, rice, wheat, and potatoes, s especially those who grow soybeans, struggling to keep up.
- Mon, December 8, 2025 at 8:54 PM UTC Kim Lyons
To help farmers, Trump wants to loosen environmental constraints on tractor manufacturing
As he unveiled s $12 billion aid package to provide relief to American farmers on Monday, President Trump admonished farm equipment-makers to lower their prices on tractors.
He blamed "environmental restrictions" for driving up costs, and said companies like Deere & Co. would be allowed to forgo such regulations, according to Bloomberg.
"They’re going to have to reduce their prices because farming equipment has gotten too expensive, and a lot of the reason is because they put these environmental excesses on the equipment, which don’t do a damn thing except make it complicated," the president said.
Bloomberg reports:
Companies prepare — as best they can — for possible tariff refunds
Companies are lining up and preparing for a tariff refund should the US Supreme Court force the Trump administration to refund billions in tariff revenue.
Some retailers, like Costco (COST) are suing the Trump administration in order to secure their future eligibility for refunds. But there is still uncertainty about whether the Supreme Court's decision will invalidate Trump's tariffs.
Yahoo Finance's Washington Correspondent Ben Werschkul looks at the latest developments within Trump's tariffs.
- Mon, December 8, 2025 at 6:48 PM UTC Grace O'Donnell
UK trade minister to visit US this week for talks on tariffs
Reuters reports that the UK's trade minister will visit the United States this week to follow up on trade talks after the two countries signed a deal to eliminate tariffs on UK pharmaceuticals in exchange for the UK to reform its drug pricing scheme.
From Reuters:
- Mon, December 8, 2025 at 1:20 PM UTC
Japan revises economic data to show bigger contraction in July-September period
Japan's economy shrank 2.3% in the July-September period, according to data from the government. This contraction was partly due to exports suffering due to the impact of President Trump's tariffs and a fall in public investments.
The AP reports:
Trump orders probe of food industries for possible price fixing
China's trade surplus tops $1T for first time
China's trade surplus in goods exceeded $1 trillion for the first time this year, indicating that it exported significantly more goods to other countries than it imported. Its US shipments, however, dropped 29% amid the trade war between the US and China.
In November, China's overall exports were 5.9% higher than in the same month in 2024, at $330.3 billion, exceeding economists' estimates. It was also an improvement from a 1.1% contraction in October. This latest data only highlights the widening gap between the country's exports and imports.
In the first 11 months of the year, China's trade surplus was $1.076T, according to data released by Beijing's customs administration. The record surplus comes in the wake of a deescalation in trade tensions between the US and China, which resulted in a one-year truce being agreed in October.
But China's export success has drawn criticism from trading partners, such as France, with President EMacron pointing to “unbearable” imbalances on a visit to the country last week.
The AP reports:
China's November exports expected to have rebounded off US tariff truce
China's exports are likely to have returned to growth in November, following a dip in October. Manufacturers rushed to move inventory to take advantage of the one-year trade truce with the US.
Reuters reports:
IKEA to ramp up US production as tariffs bite
China hints it might be easing export limits on rare earths
China signalled on Thursday that it might be open to relaxing restrictions on rare earth exports, after Beijing introduced curbs which caused turmoil for businesses globally.
"To my knowledge, the Chinese government has promptly authorized all compliant export applications for civilian purposes," said spokesman He Yadong from the Chinese Ministry of Commerce.
The one-year trade truce reached between President Trump and China's Xi Jinping last month helped suspend the October restrictions Beijing placed on rare earth materials.
DPA reports:
Trump considering USMCA exit
President Trump is considering withdrawing from the United States-Mexico-Canada Agreement (USMCA), according to a report in Politico on Thursday. US Trade Representative Jamieson Greer told the publication that Trump may decide next year to withdraw from the USMCA.
The USMCA is a free trade agreement, and its main function is to allow most products that meet its primary rules of origin to be traded between the US, Canada, and Mexico largely duty-free.
The agreement this year has taken much of the bite out of Trump's warnings toward Canada and Mexico, as only certain goods face the hefty tariffs the president has imposed or threatened on the US's neighbors.
Politico reports:
Trump praises Nvidia CEO Jensen Huang after discussion about export controls
President Trump praised Nvidia's (NVDA) CEO, Jensen Huang, on Wednesday and said the executive was aware of where he stood regarding export controls on Nvidia AI chips.
Trump called Huang a "smart man" when questioned about the meeting. The US president also added that he made clear to Huang his views on export controls and the types of chips that the company is allowed to give to China.
Reuters reports:
Ahead of tariff ruling, businesses race to secure refunds
Businesses across the US are lining up for tariff refunds and betting that the US Supreme Court will rule against President Trump's tariffs, as they believe Trump will be forced to repay billions of dollars collected on imports.
From Costco (COST) to Bumble Bee Foods, several companies have hired lawyers and filed claims to the US government in the hope that they will receive a payout if Trump's tariffs are struck down.
The Supreme Court has yet to rule, but it seems companies are waiting in the wings to see if the verdict goes against Trump's flagship tariffs.
The New York Times reports:
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