U.S. Farmers Face Uncertainty as Tariffs Loom

The American Farm Bureau (AFB) has expressed concern over the potential impact of new tariffs on U.S. farmers and ranchers. In a letter to President Donald Trump, the AFB warned that retaliatory measures from Canada, Mexico, and China could create financial hardships for U.S. agriculture. The letter highlights the importance of international markets to U.S. farmers and ranchers, with over 20% of U.S. agricultural products being exported.

The AFB's letter comes as the U.S. government considers imposing additional tariffs on these nations' imports. The AFB urges the administration to carefully consider the impact on American farmers and ranchers, associated businesses, and rural communities when determining potential trade actions. The letter also provides context about the importance of international markets to U.S. farmers and ranchers, stating that over 20% of U.S. farm income is based on agricultural exports.

The AFB's concerns are well-founded, as retaliatory actions often target U.S. agriculture. In 2018, the U.S. exported over $30 billion in agricultural products to Mexico, $29 billion to Canada, and $26 billion to China – our top three markets by value combined for half of total agricultural exports. Any effort to impose additional tariffs on these nations' imports runs the risk of significant retaliatory measures against U.S. agricultural exports.

The AFB's letter also emphasizes the broader context of the importance of international markets to U.S. farmers and ranchers. Ninety-five percent of the world's consumers live outside the borders of the United States, and over twenty percent of U.S. farm income is based on agricultural exports. Expanding opportunities for U.S. crop and livestock producers to access international markets will boost farm income in the United States, while preserving existing access is critical to maintaining farm income. U.S. agricultural exports amounted to $174.5 billion in FY2024, and historically, every $1 of U.S. agricultural exports results in over $2 in additional domestic economic activity.

The AFB urges the administration to make certain that any action taken in the near- or long-term with Canada, Mexico, and China does not make it more difficult for American farm families to raise a safe and affordable crop on domestic soil. The AFB's concerns highlight the delicate balance that must be struck between protecting domestic industries and maintaining access to international markets for U.S. agricultural products.

In conclusion, the AFB's letter serves as a reminder of the importance of international markets to U.S. farmers and ranchers and the potential impact of new tariffs on the agricultural sector. As the U.S. government considers trade actions, it must carefully weigh the potential consequences for American farmers and ranchers, associated businesses, and rural communities. By doing so, the U.S. can help ensure the long-term stability and prosperity of the agricultural sector.