Tariffs Threaten U.S. Farmers' Livelihoods and Exports

American Farm Bureau President Zippy Duvall today expressed alarm about potential harm to farmers resulting from the order signed by President Trump imposing stiff tariffs on the United States’ top three agricultural markets by value. An economic emergency was declared to put duties of 25% on imports from Mexico and Canada, with limited exceptions, as well as 10% on all imports from China. Canada and Mexico both announced they would impose retaliatory measures.

"Farm Bureau members support the goals of security and ensuring fair trade with our North American neighbors and China, but, unfortunately, we know from experience that farmers and rural communities will bear the brunt of retaliation. Harmful effects of retaliation to farmers ripple through the rest of the rural economy," Duvall said.

In addition, over 80% of the United States’ supply of a key fertilizer ingredient — potash — comes from Canada. Tariffs that increase fertilizer prices threaten to deliver another blow to the finances of farm families already grappling with inflation and high supply costs.

"Farm and ranch families answer the call to feed America’s families and the world, and these tariffs and the promised retaliation will put further stress on their livelihoods. More than 20% of U.S. farm income comes from exports, which are dominated by these three markets. Just last year 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 and nearly half of all exports by value combined," Duvall added.

The uncertainty hits just as operating loans are being secured and spring planting approaches, leaving farmers in a tough spot. We look forward to working with President Trump to position our farmers for success while also ensuring American strength and leadership on the international stage."

The tariffs, if left in place, will have significant impacts on U.S. farmers and the broader rural economy. Increased input costs, reduced export demand, and uncertainty will make it more challenging for farmers to maintain productivity and profitability. The potential for a trade war and further escalation could exacerbate these issues, leading to higher inflation and slower economic growth.

To mitigate these impacts, the U.S. could work with Mexico, Canada, and China to address the root causes of the tariffs, provide financial assistance to affected farmers, and engage in diplomatic efforts to resolve the disputes. By doing so, the U.S. can help ensure the stability and success of its farmers and the broader rural economy.