U.S. President Donald Trump has issued an executive order recognizing glyphosate as a substance of strategic importance for the country's food security and defense. This decision, based on regulations from the Korean War era, aims to guarantee the continuous production of this controversial herbicide in the United States. The main beneficiary of the new regulations is the Bayer conglomerate, which is the sole producer of this substance in the American market through its subsidiary Monsanto.

Glyphosate as a Defense Product

President Donald Trump has placed glyphosate production under the Defense Production Act, recognizing it as essential for security.

Support for Bayer Conglomerate

The decision supports Bayer and its subsidiary Monsanto, the only domestic manufacturer of the herbicide in the U.S..

Conflict Over Tariff Costs

White House advisor Kevin Hassett has demanded penalties for Fed analysts over a report on the harmfulness of tariffs.

Changes in American Agriculture

Farmers are increasing soybean cultivation to 85 million acres due to revived export demand from China.

President Donald Trump has signed an executive order granting glyphosate and phosphates the status of defense-critical goods. The decision was made under the Defense Production Act (DPA). The White House argues that dependence on foreign suppliers of plant protection products exposes American agriculture to actions by “hostile external actors.” Currently, the only producer of glyphosate in the U.S. is the company Monsanto, owned by the German giant Bayer. The Defense Production Act of 1950 has been used multiple times in U.S. history, not only during armed conflicts but also in crisis situations like the COVID-19 pandemic, to mobilize the private sector.This move coincides with the legal troubles of the company Bayer, which has proposed a settlement worth $7 billion in lawsuits regarding the alleged carcinogenicity of the Roundup product. The new legal status is intended to protect producers from potential disruptions resulting from raw material shortages or sanctions. Representatives of the conglomerate assure that the new regulations in the United States will not affect the availability of the product in foreign markets. Simultaneously, the Trump administration has intensified a dispute with the Federal Reserve. Economic advisor Kevin Hassett sharply criticized a report from the New York Fed branch, indicating that the costs of tariffs are mainly borne by American consumers and companies. In the background of the glyphosate dispute, American farmers are preparing for changes in crop structure. The U.S. Department of Agriculture (USDA) predicts that this year, soybean cultivation will increase to 85 million acres, while the corn acreage will decrease. This is a direct result of the resumption of exports to China. Meanwhile, experts and financial markets anxiously await a decision from the Supreme Court regarding the legality of the tariffs introduced by the president, which could come in the coming days. 7 billion USD — is the proposed settlement amount in glyphosate lawsuitsSoybeans (current): 81.2, Soybeans (forecast): 85.0[{"aspect": "Market Status", "before": "Standard plant protection product", "after": "Product of strategic importance (DPA)"}, {"aspect": "Producer Position", "before": "Risk of disruptions and lawsuits", "after": "Government protection of production"}]

Mentioned People

  • Donald Trump — President of the United States, who signed the executive order on glyphosate and is pursuing a tariff policy.
  • Kevin Hassett — Chief economic advisor to the White House, criticizing Federal Reserve reports.