President Donald Trump took action Saturday to impose new tariffs on Canada, Mexico and China, which could have a sweeping impact on the American economy.
The additional tariffs on Canadian and Mexican goods will be 25 percent, although only 10 percent on Canadian energy. The new tariff on Chinese goods will also be 10 percent, as Trump indicated earlier. They are set to go into effect on Tuesday, according to the executive order for the Canadian tariffs that Trump signed.
After the announcement- the Chairman of the House Ag Committee, GT Thompson, defended the move and offered this statement:
“President Trump’s tariff policy has been an effective tool in leveling the global playing field and ensuring fair trade for American producers. Look no further than Colombia’s about face on accepting repatriated criminal migrants at the mere threat of tariffs.
“After four years of the Biden-Harris Administration’s failure to expand foreign markets, which led to an inflated agricultural trade deficit of $45.5 billion, America’s producers deserve an Administration that will fight for them. I look forward to working alongside of President Trump to support our hardworking producers and to make agriculture great again.”
However, the farm coalition, Farmers for Free Trade, sees little upside: Bob Hemesath, Iowa farmer and Board Chairman of Farmers for Free Trade, the nation’s leading ag trade advocacy organization, released the following statement on tariffs announced on America’s largest ag export markets.
“Canada, Mexico and China together buy half of all American ag exports. They are indispensable markets for the livelihood of the American ag economy. Placing tariffs on the three largest export markets for American farmers and ranchers, particularly for an extended period of time, would have severe consequences.
“American farmers are already struggling. Record-high input costs, declining crop prices, and global supply gluts have created an environment where many farmers are operating at a loss. Adding tariffs to the mix would only exacerbate the situation across much of rural America.
“As we are already seeing farmers will bear the heaviest burdens from retaliation and will now be an immediate target for steep reciprocal tariffs. Tariffs will also put American farmers at a disadvantage to competitors in South America and other parts of the world who view tariff escalations as an open door to taking our market share.
“Mexico and Canada have been partners in trade agreements that have grown U.S. ag exports to those countries by nearly 300 percent over recent decades. The President delivered for farmers through USMCA, strengthening the agreement. Under tariffs, that market growth could wither away.
“Farmers for Free Trade strongly urges the administration to reconsider these proposed tariffs.”
Meanwhile On Friday- The American Farm Bureau sent President Donald Trump a letter expressing concern that new tariffs levied against Canada, Mexico and China may inadvertently create financial hardships on U.S. farmers and ranchers. Historically, retaliatory actions often target U.S. agriculture but then ripple throughout the U.S. economy.
“Last year, the U.S. exported over $30 billion in agricultural products to Mexico, $29 billion to Canada and $26 billion to China – our top three markets by value combined for half of total agricultural exports,” the letter states. “Any effort to impose additional tariffs on these nations’ imports runs the risk of significant retaliatory measures against U.S. agricultural exports. We ask that you carefully consider the impact on American farmers and ranchers, associated businesses and rural communities when determining potential trade actions. For decades, American agriculture has strongly supported efforts to open the world to our agricultural and other trade products.”
The letter also provides broader context about the importance of international markets to U.S. farmers and ranchers, stating, “Ninety-five percent of the world’s consumers live outside the borders of the United States and over twenty percent of U.S. farm income is based on agricultural exports. Expanding opportunities for U.S. crop and livestock producers to access international markets will boost farm income in the United States, while preserving existing access is critical to maintaining farm income. U.S. agricultural exports amounted to $174.5 billion in FY2024, and – historically – every $1 of U.S. agricultural exports results in over $2 in additional domestic economic activity.”
Over 20% of U.S. agricultural products are exported. For many commodities, the percentage is significantly higher. U.S. actions, including implementing tariffs, that ultimately increase costs and drive down prices for farmers and ranchers would be especially difficult at a moment when so many are already facing insolvency.
The letter continues, “We urge your Administration to make certain that any action taken in the near- or long-term with Canada, Mexico and China does not make it more difficult for American farm families to raise a safe and affordable crop on domestic soil.”
Read the full letter here.
