Americans love foreign products, but is our dul to Canadian whiskey, Mexican avocado, and Brazilian coffee a bad thing? When I ask President Donald Trump, the answer is clear. yes. On Wednesday, the president announced a 10% tariff on the product at baseline From 180 countriesincluding higher fees in certain countries where the president considers bad actors.
These obligations have a negative impact on the agricultural sector, which is heavily dependent on trade. Imports despite exporting over $175 billion in agricultural products (third highest level on record). I’ve been overtaken Exports in 2024.
If history is any indicator, farmers will certainly pay for Trump’s trade war. During the first Trump administration, retaliatory tariffs on American goods resulted in a $27 billion loss on agricultural exports. According to For the US Department of Agriculture, most of it was caused by losses in trade with China.
This time, the damage could be even more serious. Wednesday’s announcement raised tariffs on three of the US’s five largest agricultural trading partners: China (34%), the European Union (20%) and Japan (24%). Mexico and Canada, the two largest trading partners in the United States, have been exempt from this list, but have faced 25% of their duties on certain products since March.
Together, these five markets account for more than 60% of US agricultural exports and retaliatory tariffs. China imposes 10% to 15% tariffs on American soybeans, cotton, pork and poultry. In March, Canada announced retaliatory tariffs on many American goods. $5.8 billion worth of agricultural products. Meanwhile, the European Union is considering it A set of tariffs It affects the agricultural sector.
These tariffs also allow American farmers to access foreign markets and thus reduce revenues, increasing the cost of production and fertilizer, one of the biggest costs involved in agriculture. Imports of the three most commonly used nutrients in fertilizers – Potassium (potassium), nitrogen, and phosphorus –topping In 2023, $10 billion, of which $5 billion came from Canada. Kali is “an irreplaceable element of modern agricultural production,” According to The Fertilizer Institute is primarily sourced from Canada. On the other hand, nitrogen is Import Mainly from Canada (the country meets 10% of the US nitrogen needs), Russia, Trinidad and Tobago (10% tariffs).
Trump’s announcement holds a 10% collection of Canadian Polly, which is not in compliance with the US-Canada trade agreement. The president also has Emergency tap However, the movement is to increase domestic potash production. It’s unlikely To reduce the dependence of mineral imports.
Consumers can expect food prices to rise as farmers face higher production costs and imported products are taxed.
Since the outbreak of bird flu, the US has imported eggs from Türkiye and has already been shipped This year, there are 15,000 tons of eggs in the US. Under the new tariffs, eggs imported from Türkiye face a 10% tax. Costs of importing bananas from Guatemala (10% tariff), instant coffee from Vietnam (46% tariff), vanilla from Madagascar (47% tariff), and many other goods will also rise. As grocery stores operate at a low profit margin, these costs are inevitably carried over to American shoppers.
The damage caused by this policy will not be lost in the Trump administration. Monday, Agriculture Secretary Brook Rollins I said Des Moines registration Her agency is ready to “all” farmers affected by tariffs through a cash assistance program. Under the first Trump administration, the Agriculture Bureau also opposed poor trade policies by issuing $28 billion remedies for farmers.
Financial compensation may give farmers a reprieve, but it will have to sacrifice taxpayers and pay more for their favorite products for Trump’s trade war.
