U.S. Farmers Face Rising Costs and Decreased Exports Due to Trump’s Tariffs on Canada, Mexico, and China
U.S. President Donald Trump’s new tariffs on goods from Canada, Mexico, and China have the potential to negatively impact the $191 billion U.S. agricultural export industry and increase costs for farmers who are already struggling with low crop prices, according to warnings from farm groups on Tuesday.
Trump enacted a 25% tariff on imports from Mexico and Canada and increased tariffs on Chinese goods to 20%, leading to trade disputes with major buyers of U.S. farm products. In response, both Canada and China imposed retaliatory tariffs on U.S. products such as wheat and poultry. Additionally, farm groups pointed out that U.S. tariffs on Canadian imports would raise fertilizer prices, as around 85% of U.S. potash fertilizer imports come from Canada.
The combination of rising costs and reduced exports is expected to affect farmers, many of whom are preparing to lose money on important crops like corn and soybeans. Many farmers have been losing money on nearly every major crop for the past three years, and the added costs and reduced markets for U.S. agricultural goods could place an unsustainable financial strain on some farmers.
U.S. Agriculture Secretary Brooke Rollins has been in communication with President Trump regarding the economic challenges faced by farmers. Rollins mentioned that Trump’s message to the agricultural community is one of trust, despite the economic concerns.
China, the world’s largest importer of soybeans, retaliated by imposing tariffs on $21 billion worth of American agricultural and food products. Canada also imposed retaliatory duties on $20.84 billion (C$30 billion) of U.S. imports.
The ongoing tariff conflicts have led some Canadian grocery stores to cancel orders from U.S. produce growers and seek alternative suppliers from other countries, as reported by the U.S. farm group Western Growers. Last year, Canada, Mexico, and China accounted for $8.4 billion in U.S. red meat exports, according to the U.S. Meat Export Federation.
The tariff disputes are seen as harmful to those who rely on international trade for their livelihoods, as noted by Greg Tyler, CEO of the USA Poultry & Egg Export Council.
