U.S. farmers are bracing for higher costs and reduced export opportunities as President Donald Trump’s new tariffs on goods from Canada, Mexico, and China threaten to disrupt the $191 billion agricultural export sector. Farm groups warn that the tariffs, which include a 25% duty on Canadian and Mexican imports and a doubling of Chinese tariffs to 20%, could exacerbate financial struggles for farmers already facing low crop prices.
Canada and China have retaliated with levies on American agricultural products, including wheat and poultry, while U.S. tariffs on Canadian imports are expected to raise fertilizer costs. Approximately 85% of U.S. potash fertilizer imports come from Canada, according to industry data.
“For the third straight year, farmers are losing money on almost every major crop planted,” said Zippy Duvall, president of the American Farm Bureau Federation. “Adding even more costs and reducing markets for American agricultural goods could create an economic burden some farmers may not be able to bear.”
China, the world’s largest soybean importer, has imposed retaliatory tariffs on
21 billion worth of U.S. agricultural and food products. Canada has targeted 20.84 billion in U.S. imports, prompting some Canadian grocers to cancel orders from American produce growers in favor of suppliers from other countries.
The U.S. Meat Export Federation reported that Canada, Mexico, and China accounted for $8.4 billion in U.S. red meat exports last year. “Tariff wars are only serving to harm those who rely on international trade to support their livelihoods,” said Greg Tyler, CEO of the USA Poultry & Egg Export Council.
U.S. Agriculture Secretary Brooke Rollins acknowledged the challenges but emphasized Trump’s message to farmers: “Trust me.” However, farm groups remain concerned about the immediate impact of higher costs and lost markets.
As trade tensions escalate, U.S. farmers face an uncertain future, with potential long-term consequences for the agricultural sector and rural economies.