Agriculture Groups Praise Tariff Pause, Urge Swift Trade Resolutions

Hours after a promised run of “reciprocal” tariffs went into effect on Wednesday, President Donald Trump put a 90-day pause on some of the duties via a post on Truth Social. 

In the post, he also upped tariffs on China from the previously planned 104% to 125%. The additional tariffs came after China announced 50% retaliatory duties on U.S. imports, which will go into effect Tuesday.

On Thursday, CNBC reported that White House officials confirmed the 125% tariffs would go on top of 20% duties applied in February — putting total tariffs on Chinese imports at 145%. 

The 10% duty on imports from all countries that went into effect on April 5 will remain in effect during the 90-day pause, with 25% tariffs on goods from Canada and Mexico that fall outside of the United States-Mexico-Canada Trade Agreement (USMCA). In addition, the 10% duty on potash and energy from Canada is still in effect.

In response, the European Union paused its planned retaliatory tariffs in line with the 90-day U.S. pause. European Commission President Ursula von der Leyen said, “We want to give negotiations a chance. If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table.”

Many U.S. politicians and commodities groups were quiet after the announcement on Wednesday, but reactions urged the White House to negotiate trade deals and cool the current trade war with China.

Farm Organizations

American Farm Bureau Federation (AFBF)

The AFBF is the nation’s largest farmer-run organization and serves farmers in all 50 states.

“Farm Bureau appreciates President Trump’s decision to pause the reciprocal tariffs on dozens of America’s trading partners for 90 days,” said AFBF President Zippy Duvall. “We have been engaging directly with the White House, U.S. Trade Representative and U.S. Department of Agriculture to emphasize the toll tariffs will take on America’s farmers and ranchers, who are already strapped because of high supply costs and shrinking paychecks. Creating more market challenges puts at risk more than 20% of U.S. farm income. We’re encouraged that those concerns are being heard.

“While the pause brings some temporary certainty, questions remain about the long-term competitiveness for farmers in the global marketplace. We encourage the administration to swiftly resolve trade disputes and to pursue strategies that will ensure America’s farmers can continue to stock the pantries of families here at home and abroad.”

Commodities Groups

National Corn Growers Association (NCGA)

The NCGA is a farmer-led trade organization that represents the interests of more than 300,000 farmers.

“We appreciate the administration’s decision to place a 90-day pause on the reciprocal tariffs it had put in place earlier this week,” said NCGA President Kenneth Hartman Jr. “We ask President Trump and his administration to use this delay to negotiate market access opportunities for American-made products, including corn.

“Planting is about to begin in much of the country. The longer that uncertainty exists the more concerned we become that our growers could harvest billions of bushels of corn for which they will not have reliable markets. Our farmers want certainty that our customers at home and abroad will buy our products in the months and years ahead.”

American Soybean Association (ASA)

The ASA represents U.S. soybean farmers on domestic and international policy issues important to the soybean industry. ASA has 26 affiliated state associations representing 30 soybean-producing states and nearly 500,000 soybean farmers.

“We run the risk of immediate impacts this growing season, along with the impacts a prolonged trade war with China will inflict on our industry once again,” said Caleb Ragland, American Soybean Association president and Kentucky soybean farmer. “The short-term disruptions are painful, but the long-term repercussions to our reputation, our reliability as a supplier, and the stability of those trading relationships are hard to even put into words. We’re still reeling from TW1 — Trade War One — and are certainly not thrilled about an extended TW2.

“We appreciate this pause — this opportunity for discussions that can bring resolution, but we ask the administration and China both to press pause with one another, as well, and pursue a Phase 2 trade agreement that will address U.S. trade concerns in a constructive way while preserving the markets we rely on,” Ragland said.

Senate Agriculture Committee

Sen. Peter Welch

The Vermont Democrat is a member of the Senate Ag Committee.

“President Trump’s decision is an acknowledgement of what we’ve said from day one: nobody wins in a trade war,” Welch said. “Tariffs are a tax on Vermont businesses, farmers, and families, and this administration’s on-again, off-again trade orders are causing chaos and instability for Main Street and Wall Street alike. Vermont cannot afford the current tariffs, and we certainly cannot afford these so-called ‘reciprocal’ tariffs to go back into place. Congress needs to steady the ship and reassert our trade authority.”

Manufacturing Groups

Association of Equipment Distributors (AED)

The AED is a non-profit international trade association representing companies involved in the sale, rental, manufacturing, and support of equipment used in construction, agriculture, mining, forestry, power generation, and industrial applications.

“President Trump’s pause on his reciprocal tariffs provides an opportunity for everyone to reassess the situation,” AED President & CEO Brian P. McGuire said. “AED encourages continued negotiations that result in free and fair trade, and in long-term certainty for the equipment industry and our customers. The time is now for our leaders in Washington to focus efforts on enacting tax policies that incentivize capital investment and economic growth rather than imposing trade barriers on our key partners.”

State Commodities Groups

Iowa Corn Growers Association (ICGA)

The ICGA represents Iowa corn producers in all 99 counties. 

“We commend the administration’s decision to suspend the reciprocal tariffs introduced this week temporarily,” ICGA President Stu Swanson said. “We urge President Trump and his team to use this opportunity to negotiate increased market access for farmers across the nation by strengthening existing trade channels and setting up new ones. 

“As Iowa corn farmers prepare for planting in the coming weeks, it is imperative that we have assured buyers for our corn crop come fall. With farmers experiencing tight profit margins and a declining net farm income, U.S. agriculture must have access to domestic and international markets.”