U.S. Mexico Canada Agreement
Ahead of the 2026 USMCA review, President Donald Trump is considering replacing the trilateral pact with separate deals for Canada and Mexico, a shift that could reshape North American agricultural trade.
South Texas farmer Brian Jones says years of missed water deliveries from Mexico have cut his planted acres in half, forcing tough planting decisions as a new agreement brings both hope and skepticism.
USMCA has been a boon for the American meat, livestock and poultry sector, along with the broader American food and agriculture economy and ancillary industries, The Meat Institute says in comments to the USTR.
There are only two months left for Mexico to deliver almost a million acre-feet of water. While it might deliver some, the impacts on Texas growers are going to be tough.
As tariff proposals continue to bring uncertainty, the agricultural sector is assessing how any forthcoming country-by-country trade deals might offset the disruption, or if the industry needs to brace itself for a different kind of future.
Farmers and farm groups have mixed reactions and lingering questions following President Trump’s announcement of sweeping reciprocal tariffs. Will farmers receive aid to offset tariff impact? How will U.S. trading partners react?
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.”
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.
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.
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.
President Trump says tariffs on goods from Canada and Mexico will now take effect on April 2, 2025.
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.
Secretary of Agriculture Brooke Rollins kicked off the 2025 Top Producer Summit on Tuesday morning, detailing her plan to advocate for trade. ‘We want to find market access for all our products,’ Rollins said.
The measures, effective March 12, eliminate country-specific exemptions and extend to downstream steel and aluminum products, affecting key suppliers such as Canada, Mexico, Brazil, and South Korea.
Who is next on the Trump administration’s trade radar?
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.
U.S. farmers and various trade groups are very apprehensive about not only the potential negative impacts of tariffs on the U.S. ag sector, but what they do to garner new trade agreements.
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 is preparing for potential trade challenges following Trump’s threat of a 25% tariff on Canadian imports. The Canadian government is considering a proactive approach, including the possible early release of a retaliatory tariff list.
Trudeau also announced parliament would be prorogued, or suspended, until March 24. That means an election is unlikely before May at the earliest, so Trudeau will remain in charge - at least initially - of dealing with the threat of crippling tariffs once U.S. President-elect Donald Trump takes office on Jan. 20.
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.”
A new president of Mexico will be elected on June 2. The two front-runners in the presidential race are both pro trade with the United States. That’s good news for U.S. farmers and livestock producers.
“Mexico’s decree, which runs counter to scientific findings and is in direct violation of USMCA, is negatively impacting American corn growers,” said Tom Haag, NCGA president.
During a bilateral meeting on Thursday, U.S. Trade Representative Katherine Tai discussed with Mexico’s Secretary of Economy Tatiana Clouthier various issues concerning energy and biotech corn.
Representatives from the U.S., Mexico and Canada will meet in Cancun, Mexico this week to discuss a series of disputes, including Mexican energy and biotech policies and Canadian dairy barriers.
Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.
In April 2017, Ray Starling, Special Assistant to the President for Ag, Trade and Food Assistance during the Trump administration, received some important news. What happened next helped change the course of history.