Reactions Roll In as Tariffs and New Trade Wars Put Ag Industry on High Alert

President Donald Trump enacted increased tariffs on Canada and Mexico on Tuesday, putting a 25% tariff on most goods from the U.S. neighbors and allies. Energy imports from Canada are subject to a smaller 10% duty. In addition, Trump bumped tariffs on some Chinese exports to 20% — up from 10% previously. 

The move has led to retaliatory efforts from China and Canada. The Chinese tariffs on agriculture are significant — according to a statement from China’s Customs Tariff Commission, China will place a 15% tax on “imported chicken, wheat, corn and cotton originating from the United States,” as well as 10% tariffs on “sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.”

Canada placed tariffs on around $20 billion in U.S.-made goods, including tomatoes and some fruits among other items, and in 21 days tariffs will go into effect on $86 billion worth of U.S. products. Canadian Prime Minister Justin Trudeau announced these measures Monday evening in an address to Canadians.

According to AP News, Mexico is planning retaliation of its own as soon as Sunday.

Across the U.S., a number of parties have expressed concern over the tariffs and their potential impact on agriculture — with sitting U.S. Senators and major ag membership organizations among those making statements.

Politicians

Sen. Amy Klobuchar

Minnesota Democratic Senator Amy Klobuchar is a member of the Senate Ag Committee, and has expressed opposition to the Trump Administration’s tariff strategy in the past.

“These across-the-board tariffs will make it harder for Americans to put food on the table and will squeeze farmers who will lose valuable export markets and see higher input costs,” Klobuchar said. “This will raise prices for the average family by more than $1,200 a year, raise gas prices by as much as 50 cents a gallon, and raise fertilizer costs for corn and soybean farmers. 

“Already, we are seeing retail stores and refineries increase prices – and retaliation from other countries that will raise prices even more. Farmers have spent decades building export markets, only to have them ripped away overnight. While I support targeted tariffs, these sweeping, across-the-board tariffs will set our country back.”

Rep. Angie Craig

Minnesota Democratic Representative Angie Craig (MN-02) is the Democrat’s Ranking Member on the House Ag Committee.

“These tariffs hurt farm country, plain and simple. Farmers, ranchers, and producers need stability, and today’s tariffs do the opposite,” Craig said. “They will increase input costs for farmers and threaten market access to three of our largest trade partners. This is simple math. Making farmers pay more for fertilizer and fuel drives up the cost of food. Making manufacturers pay more for aluminum and steel hurts sales and risks jobs. Making builders pay more for timber increases the cost of housing. None of this helps lower costs for the middle class.”

Farmer Organizations

American Farm Bureau Federation (AFBF)

The American Farm Bureau Federation is “the national advocate for farmers, ranchers and rural communities.” As the “unified voice of agriculture” the organization represents 2,800 county farm bureaus and nearly 6 million U.S. farm families.

“Farmers support the goals of ensuring security and fair trade with other nations, but additional tariffs, along with expected retaliatory tariffs, will take a toll on rural America,” said AFBF President Zippy Duvall. 

“Farmers and ranchers are concerned with the decision to impose increased tariffs on imports from Canada, Mexico and China – our top trading partners. Last year, the U.S. exported more than $83 billion in agricultural products to the three countries.

“Approximately 85% of our total potash supply – a key ingredient in fertilizer – is imported from Canada. For the third straight year, farmers are losing money on almost every major crop planted. Adding even more costs and reducing markets for American agricultural goods could create an economic burden some farmers may not be able to bear.

“We ask the president to continue working with our international partners to find ways to resolve disagreements quickly, so farmers can focus on feeding families in America and abroad.”

National Farmers‘ Union (NFU)

The National Farmers Union advocates on behalf of more than 230,000 American farm families. 

“The tariffs announced today, along with retaliatory measures from China and Canada, will have serious consequences for American agriculture. Our farmers are the backbone of this country, and they need strong, fair trade policies that ensure they can compete on a level playing field—not be caught in the middle of international disputes,” said NFU President Rob Larew.

“We are already facing significant economic uncertainty, and these actions only add to the strain. Trade policies must come with real, tangible protections for the farmers directly affected. We’ve heard there’s a strategy in place—now we need to see it. Promises alone won’t pay the bills or keep farms afloat.” 

“Without a clear plan, family farmers will once again be left to bear the burden of decisions beyond their control, and eventually, so will consumers. We urge the administration to work with our trading partners to prevent further harm to rural communities.”

Western Growers Association (WGA)

Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in California, Arizona, Colorado, and New Mexico.

“In the last month, the looming threat of these tariffs was enough to prompt some major Canadian grocery chains to either cancel orders from American growers as they pivoted to other countries capable of supplying them, or to require American growers to secure a foreign product supply to supplant their U.S.-grown crops,” said WGA President and CEO Dave Puglia. “There is no question that with the move to impose these tariffs, our members will confront sweeping retaliatory actions that effectively block our American-grown fresh produce from those markets.”

“The risk is not just an immediate one. Years after the China tariffs and the predictable Chinese tariffs imposed in retaliation on many of our members’ U.S.-grown products, our ability to sell into the Chinese market remains handicapped in no small part because other countries took advantage of the disruption and captured much of that market. This lingering economic harm is quite likely to be replicated this time on a broader scale as Canada and Mexico represent the top two export markets for fresh produce grown in the United States.”

“Our first and by far most urgent call is for the Trump Administration to move quickly to negotiate a stand-down with these important trading partners. Beyond that, we ask that the Administration quickly implement mitigation programs to offset growers’ losses. This will aid in our shared goal of domestic food security and help American farmers maintain financial viability.”

Commodity Organizations

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.

“Farmers are frustrated. Tariffs are not something to take lightly and ‘have fun’ with. Not only do they hit our family businesses squarely in the wallet, but they rock a core tenet on which our trading relationships are built, and that is reliability. Being able to reliably supply a quality product to them consistently,” said Caleb Ragland, American Soybean Association president and soy farmer from Magnolia, Kentucky. 

Ragland explained, “As the #1 export crop for the U.S., soybean producers face huge, disproportionate impacts from trade flow disruptions, particularly to China, which is our largest market. And we know foreign soybean producers in Brazil and other countries are expecting abundant crops this year and are primed to meet any demand stemming from a renewed U.S.-China trade war. Soybean farmers still have not fully recovered market volumes from the damaging impacts of the 2018 trade war, and this will further exacerbate economic hardship on our farmers.

Ragland said of Mexico and Canada, “ASA represents nearly half a million farmers in the United States who grow soybeans, and those farmers rely on two-way trade coming in and out of Mexico and Canada. Not only are those two markets vital for the export of whole soybeans, soy meal, and soy oil, but we also rely on them for fertilizer and other products needed to successfully produce our crops. For instance, around 87% of the potash we use here in the U.S. is imported from Canada.”

National Corn Growers’ Association (NGCA)

Founded in 1957, NCGA represents more than 36,000 dues-paying corn growers in 48 states, and the interests of more than 300,000 farmers who contribute through corn checkoff programs in their state.

“Farmers are facing a troubling economic landscape due to rising input costs and declining corn prices,” said Illinois farmer and NGCA President Kenneth Hartman Jr. “We ask President Trump to quickly negotiate agreements with Mexico, Canada, and China that will benefit American farmers while addressing issues important to the United States. We call on our trading partners to work with the president to resolve these issues so that we can restore vital market access.”

The Fertilizer Institute (TFI)

TFI is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers, and trading firms.

“The Fertilizer Institute remains committed to working with the Trump Administration to promote a strong, resilient fertilizer industry that supports U.S. agriculture and ensures affordable food prices for American families. 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 TFI President and CEO Corey Rosenbusch.

“TFI continues to urge the Administration to provide a strategic carveout for Canadian fertilizers from these tariffs, including through designation as critical minerals. With the spring planting season fast approaching and U.S. agriculture continuing to face serious headwinds, maintaining reliable and cost-effective fertilizer supply chains is essential to ensuring a productive harvest and protecting American farmers from unnecessary financial strain.

“Today, 85% of our potash imports come from Canada. Potash is an irreplaceable component of modern agricultural production, and the U.S. has historically sourced nearly all the potash used by farmers from international markets. Potash deposits are geographically specific and mine development in the U.S. is time intensive and costly,” Rosenbusch continued.

“Additionally, Canada supplies U.S. growers with nearly 10% of their nitrogen fertilizer needs, accounting for 25% of total nitrogen fertilizer imports, and nearly 20% of sulfur consumed by U.S. farmers and others.

“An open, fair, predictable, and transparent trade environment between the U.S. and Canada is vital to supporting a strong, competitive fertilizer industry that meets the needs of American growers. Restrictions on this critical cross-border trade will drive up costs for farmers, which could ultimately be felt at the grocery store by consumers.

“TFI recognizes that these tariffs are part of a broader policy agenda, and we encourage ongoing dialogue between the U.S. and Canada. We thank President Trump for his continued engagement with the fertilizer industry and the agriculture community, and we remain committed to working with the Administration and Congress to ensure the long-term security and stability of the U.S. fertilizer supply chain.”

National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC)

Leaders from the NMPF and the USDEC released the following statements today in response to retaliatory measures announced by Mexico, Canada and China.

“The President believes tariffs are necessary to address the opioid crisis in the United States. We urge Mexico and Canada to take U.S. concerns seriously,” said Gregg Doud, President and CEO of NMPF. “Mexico and Canada are valuable trading partners that American agriculture depends on, and trade with those countries is critical to the well-being of dairy farmers. Let’s focus on getting the concerns ironed out quickly so we can focus on bolstering these critical trade relationships. Then, let’s put those tariff tools to work, driving change with the trading partner that’s brushed off U.S. concerns for far too long – the European Union.”

“Exports are fundamental to the health of the U.S. dairy industry. One day’s worth of milk production out of every six is destined for international consumers and U.S. dairy sales to Mexico, Canada and China account for 51% of our total global exports. That’s a lot at stake,” said Krysta Harden, President and CEO of USDEC. “Dairy farmers and manufacturers are counting on a swift resolution to this impasse and urge a redoubling of efforts at the negotiating table to find a workable way forward that addresses U.S. national security concerns while also preserving export flows that are vital to supporting American farmers and workers. We’re eager to focus on working with the Administration on expanding global opportunities for American dairy products in ways that build on the existing base of sales to our trading partners.”

State Agriculture Organizations

Illinois Farm Bureau (ILFB)

ILFB was established in 1916 and serves farmers of Illinois, the third largest exporter of agricultural commodities in the U.S. Total exports from Illinois in 2023 were estimated at $81 billion, of which $13.7 billion was attributed to agriculture.

“Illinois Farm Bureau urges President Trump to honor the USMCA, which was successfully negotiated during his last term, and to find other methods to combat illegal drugs and secure our border,” said ILFB President Brian Duncan. “We remain deeply concerned with the use of tariffs and their potential to spark retaliation on America’s farmers. Illinois farmers’ products – from grains and feed, corn, soybeans, ethanol, beef, pork, and more – rely on access to foreign markets and will undoubtedly be impacted by these new tariffs either through increased prices or decreased market access. This uncertainty coupled with an already struggling farm economy has farmers worried as we head into planting season.”