On Tuesday morning, President Trump doubled the 10 percent tariff on Chinese goods to 20 percent and put 25 percent tariffs on imports from Mexico and Canada. The three countries are America’s biggest trading partners. During the State of the Union address last night, Trump pitched the tariffs as a step toward prioritizing “America first” production and markets while boosting America’s power within international trade; Trump said additional tariffs should be expected on April 2. Trump said the tariffs “will be great” for American farmers—but also said that “it may be a little bit of an adjustment period.”
“To our farmers, have a lot of fun, I love you, too,” he said.
Over the past several weeks, farmers representing a wide range of agricultural interests have expressed concerns that tariffs would hurt farmers by threatening export markets and raising the costs of imported goods. At multiple events, Agriculture Secretary Brooke Rollins has told farm groups the president understands and is considering those concerns. Economists also warn that tariffs will cause food prices to jump. Some of the biggest potential impacts include:
Fertilizer imports: According to trade group The Fertilizer Institute (TFI), 85 percent of the mineral fertilizer potash used by American farmers comes from Canada; our northern neighbor also provides a quarter of farmers’ nitrogen needs. In a statement, TFI asked the administration to consider exempting fertilizers from the Canadian tariffs. “A stable and affordable supply of fertilizers is critical to maintaining the global competitiveness of U.S. farmers, strengthening rural economies, and keeping food prices in check,” said CEO Corey Rosenbusch.
Agricultural exports: China is the biggest export market for American farmers. In response to Trump’s tariffs, the country announced it will reciprocate with 15 percent tariffs on American food and agricultural products including soybeans, meat, and chicken. Mexico and Canada are also promising retaliation, which could impact exports of American wine and beer, grains, and meat. During Trump’s first term, tariffs caused economic losses in farm country and the USDA paid farmers tens of billions of dollars to make up for it. Secretary Rollins has said the agency is prepared to do that again.
