Tariffs
Tariffs, also known as taxes on imported goods, are a tool used by President Donald Trump as part of his overall economic vision. As U.S. agriculture navigates tariffs and their implications on trade, commodity prices, input costs and more, ag economists and farmers remain divided on the effectiveness of tariffs and what the changes mean for the broader economy and livelihoods.
In a Wednesday morning press conference, ahead of Trump announcing his global tariff plan, Sheinbaum says Mexico will “announce a comprehensive program, not a tit for tat on tariffs,” but added, “we have a plan to strengthen the economy under any circumstance.”
The parent company of Case IH, New Holland, Steyr and other machinery brands says there will be no impacts to production and parts shipments will continue as planned.
The downturn in the ag economy has everyone from farmers and ag lenders to even ag economists concerned. Waning optimism is an overriding theme for the row crop side of agriculture, yet some farmers hope President Donald Trump’s tough stance on trade can get the ag economy back on track longer-term.
Canadian farmers are on edge as the latest trade war could impact the crops they grow as well as the inputs they need to plant a crop this spring.
With tariffs and trade in focus again, a recent AgWeb poll asked farmers if they support President Donald Trump’s use of tariffs as a negotiating strategy.
The majority of respondents in the March Ag Economists’ Monthly Monitor agree the U.S. is currently in a trade war, but who wins? Ag economists say it’s not the U.S., Canada or Mexico but rather Brazil that could come out on top.
Tariff whiplash is consuming the commodity markets — and the possible impact is stirring up quite the debate. At present, President Trump says he’s sticking to his plan to impose additional tariffs on Canada, Mexico and China starting April 2.
While many farmers are comparing the current threats of tariffs and trade wars to the situation they endured in 2018, Joe Vaclavik believes this time will be better.
Additionally and specifically, Canadian potash imports into the U.S. will be subject to a reduced import tariff of 10%.
Mexico’s president said on Tuesday the country will respond to U.S. tariffs with a 25% tariff on U.S. goods, but she will hold off announcing the targeted products until Sunday.
In 2023, the U.S. imported nitrogen, phosphorus, and potassium fertilizer products valued at more than $10 billion, and of that more than half came from Canada.
Trump said Monday that his planned 25% tariffs on all Mexican and Canadian exports to the U.S. “are going ahead on time, on schedule,” meaning the duties would take effect on March 4 at the conclusion of a one-month suspension.
The only thing harder than keeping up with the velocity of news from Washington D.C. is figuring out what it means for the future. On the latest episode of Unscripted, long-time ag economist Dan Basse provides insights into what we can expect.
As the industry braces itself for a tumultuous road ahead, it is crucial for stakeholders across the board to engage in constructive dialogue and seek resolutions that protect the backbone of rural America – our dairy farmers.
“It’s unlikely that changes in tariffs will impact prices headed into the Super Bowl, however, we’ll see how it plays out in the coming weeks,” Dr. Michael Swanson says.
Trump recently signed three executive orders imposing tariffs on Canada, Mexico and China. This marks the first time a president has used powers granted under the International Emergency Economic Powers Act of 1977.
Just hours before the tariffs were set to take effect, Mexican President Claudia Sheinbaum announced the news on X, and President Donald Trump later confirmed. Mexico is the top destination for U.S. ag exports. The announcement from Canada came later on Monday.
Following President Trump’s decision to impose 25% tariffs on Canada and Mexico, Canada announced its own 25% tariffs on $155 billion worth of U.S. imports. Mexico also announced its own retaliatory measures, but no specifics were unveiled as of Sunday morning.
Speaking from the Oval Office, Trump justified the tariffs as a response to what he described as excessive migration, drug trafficking and unfair trade practices. While he suggested the tariff rate could further increase, he indicated a decision on whether oil imports would be exempt would come soon.
Canada has been making news lately in the U.S., between feisty trade talks and the surprising announcement by Prime Minister Justin Trudeau that he will resign. For an ag insider’s take on these events and more, Tyne and Clinton talk with Shaun Haney from RealAgriculture, Canada’s leading national agriculture publication, on this episode of Unscripted.
Russia and China are simply not our friends.
Some economists think agriculture is in a recession. Arlan Suderman, chief commodities economist for StoneX, is one of them. However, he believes comparisons to the 1980s are misguided.
Trump said he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate a free-trade deal.
In response to John Deere’s recent announcement about moving some of its production to Mexico, Trump expressed concern about the impact on American workers, stating, “It’s hurting our country. It’s hurting our workers.”
The concern is that limiting access to foreign supply of the herbicide 2,4-D could put farmers in a tough spot.