Trump exempts USMCA goods, reduces potash tariffs
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March 6, 2025 — President Donald Trump is exempting goods under the U.S.-Canada-Mexico Agreement from the 25% tariffs he imposed on Tuesday. The exemption announced Thursday will expire on April 2. Trump initially announced an exemption for Mexico on Truth Social, but sources report the amendments he signed also cover Canada.
“I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump wrote on Truth Social Thursday morning. “Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl.”
Included in today’s orders is a provision lowering the duty on Canadian potash to 10%, a move likely aimed at providing relief for farmers. “The United States will be very happy, and you know, our farmers are going to be very happy,” Trump said while signing the executive orders.
According to The Fertilizer Institute, 85% of the potash used in American agriculture comes from Canada. In addition, “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,” says Corey Rosenbusch, TFI president and CEO.
American Farm Bureau Federation President Zippy Duvall was quick to issue a statement thanking President Trump for his decision to delay tariffs on Mexico and Canada.
“Ensuring the safety of America’s families and leveling the playing field for trade is a worthy goal, but unfortunately, farmers and rural communities often suffer from tariff retaliation,” Duvall wrote. “The pause will ensure farmers and ranchers can continue to export American agricultural goods to both countries without fear of retaliatory tariffs.”
Read more: Trump delays Canada, Mexico tariffs on goods under USMCA
Trump tariff retaliation targets agriculture
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March 3, 2025 — President Donald Trump’s 25% tariffs on all imports from Canada and Mexico, along with an additional 10% levy on Chinese goods, went into effect after midnight this morning. Officials in Canada and China responded, announcing retaliatory action, while Mexico plans to announce details on Sunday.
China’s Ministry of Finance issued a statement early Tuesday announcing tariffs of up to 15% on some U.S. goods starting March 10, including agricultural goods. Here’s a breakdown of the new tariffs on American agriculture:
- Additional 10% tariffs: American soybeans, sorghum, pork, beef, seafood, dairy fruits and vegetables
- Additional 15% tariffs: American corn, cotton, wheat and chicken
China has halted soybean imports from three U.S. firms and halted imports of U.S. lumber according to Bloomberg, further ratcheting up trade tensions. The country suspended soybean import licenses for CHS, Louis Dreyfus and EGT, according to a notice from China’s general administration of customs.
China will also restrict exports to 15 U.S. companies.
Canada’s Prime Minister Justin Trudeau issued a statement on Monday, saying, “Let me be unequivocally clear – there is no justification for these actions.” Trudeau says less than 1% of fentanyl intercepted at the U.S. border comes from Canada, and the country has implemented a $1.3 billion border plan to stop the flow of fentanyl.
“Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 per cent tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time,” Trudeau wrote. “Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures.”
Mexico’s President Claudia Sheinbaum says she will hold a press conference Sunday to detail tariff and non-tariff measures in response to Trump’s tariffs on Mexican goods.
Read more:
- Trade war escalates as retaliatory tariffs hit struggling farm economy
- China strikes back with new tariffs targeting U.S. farmers
Trump announces agriculture import tariffs beginning April 2
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March 3, 2025 — President Donald Trump announced Monday afternoon on social media that the United States will impose tariffs on agricultural imports beginning April 2. He did not specify the tariff rates or which products would be affected.
"To the Great Farmers of the United States: Get ready to start making a lot of agricultural product to be sold INSIDE of the United States," the president wrote on Truth Social. "Tariffs will go on external product on April 2nd. Have fun!"
The announcement comes a day after Secretary of Agriculture Brooke Rollins reaffirmed the administration's commitment to “make agriculture great again” during an address at Commodity Classic.
Read more:
- New tariffs on imported ag products: Trump’s message to U.S. farmers
- Trade war tensions rise: How new tariffs could hit your farm
Trump says tariffs to go into effect March 4
Feb. 27, 2025 — In a Thursday social media post, President Trump says 25% tariffs on imports from Canada and Mexico will go into effect on March 4. He also plans to implement an addition 10% tariff on goods from China on the same date.
Trump says the tariffs are necessary due to combat the flow of illegal drugs entering the U.S. from those countries. He did not provide any data regarding how much fentanyl is originating from American agriculture’s three largest trading partners. However, according to Trump, more than 100,000 people died last year due to the distribution of “these dangerous and highly addictive poisons.”
Earlier this month, Canadian Prime Minister Justin Trudeau announced his country would impose reciprocal 25% tariffs on U.S. goods if Trump follow through this his plan. Mexico President Claudia Sheinbaum has also said her country would levy 5% to 20% tariffs on some U.S. imports if Trump goes ahead with his tariff proposal.
Trump agrees to also pause Canada tariffs
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Feb. 3, 2025 — Canada’s Prime Minister Justin Trudeau says President Trump has agreed to pause 25% import tariffs for thirty days. Those tariffs were set to go into effect on Tuesday.
In a Monday afternoon social media post, Trudeau said he and Trump had a good phone conversation. Trudeau also announced Canada would be implementing a $1.3 billion plan to reinforce the border between the two nations with new choppers, technology and personnel. The Canadian Prime Minister said there would be “enhanced cooperation” with American officials and additional resources to stop the flow of fentanyl. He added that nearly 10,000 frontline personnel “are and will be working” on protecting the U.S.- Canada border.
Canada has also committed to appointing a “fentanyl czar,” classifying cartels as terrorists and ensuring “24/7 eyes on the border.” Canada and the U.S. will launch a joint strike force to combat organized crime, fentanyl and money laundering. Additionally, Trudeau signed a new $200 million intelligence directive to address organized crime and fentanyl.
Earlier in the afternoon, American Farm Bureau Federation issued a statement saying they were “encouraged” by Trump’s previous announcement to delay tariffs on Mexico for 30 days. AFBF President Zippy Duvall said he remained hopeful a similar agreement with Canada would be reached.
Duvall says he appreciated the Trump administration for making every effort to resolve the dispute to keep international markets accessible and ensure a stable food supply at home.
“Tariffs and tariff retaliation often hit farmers and ranchers hard, which make it more difficult for them pay their bills and grow the food America’s families rely on,” Duvall said.
Trump delays Mexico tariffs
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Feb. 3, 2025 — President Trump will delay the implementation of new tariffs on Mexico for a month. Tariffs on goods from Canada and China are still set to go into effect on Tuesday.
Mexico President Claudia Sheinbaum announced on social media Monday morning that she and Trump had a good conversation. She says Mexico has agreed to send 10,000 national guard troops to its border with the U.S, to help prevent illegal drugs, particularly fentanyl, from crossing the border. In return, she says the U.S. will pause its tariffs and work to prevent high-powered weapons from entering Mexico. Sheinbaum says teams from both countries will begin working today on issues regarding trade and security.
In his own social media message, Trump said the U.S. negotiation team will be led by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent and Secretary of Commerce Howard Lutnick. The president said he had a “friendly” conversation with Scheinbaum Monday morning. According to him, the additional Mexican troops on the border will be “specifically designated” to stop the flow of fentanyl and illegal migrants into the U.S.
“I look forward to participating in those negotiations with President Sheinbaum as we attempt to achieve a ‘deal’ between our two Countries,” Trump said at the end of his post.
Officials from Canada and the U.S. are also expected to speak Monday afternoon, though there are no indications that any deal is imminent.
Trump announces tariffs on top U.S. agriculture trading partners
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Feb. 3, 2025 — President Trump’s decision to levy tariffs on America’s three biggest agriculture trading partners has farmers hoping for the best and bracing for the worst. On Saturday, Trump announced he was imposing 25% tariffs on products imported from Canada and Mexico as well as 10% tariffs on imports from China. Canadian energy products would be subject to 10% tariffs.
Trump says the tariffs are necessary to combat illegal drugs coming into the country and related criminal activity.
House Agriculture Committee Chairman Glenn “GT” Thompson, R- Pa., says Trump’s tariff policy has “been an effective tool” in leveling the global playing field and ensuring fair trade for American producers.” Still, not all Republicans were on board with the president’s plan. During a Sunday interview with 60 Minutes, former Senate Republican Leader Mitch McConnell predicted the tariffs will drive up the cost of everything.
“Why would you want to get in a fight with your allies over this?” McConnell said.
House Agriculture Committee ranking member Angie Craig, D- Minn., says nobody wins in a trade war. She notes that tariffs imposed during the first Trump administration increased costs for farmers and consumers. Craig predicts the same will happen now, pushing prices up for items like oil, lumber, avocados, tomatoes, bell peppers, lettuce, broccoli, cucumbers, onions, mushrooms and other fresh foods. She says the new round of tariffs are “especially questionable” since Trump is the president who negotiated the USMCA trade agreement with Canada and Mexico.
“At a time when farmers are struggling with high input costs and the American people continue to struggle with the cost of groceries, these tariffs will make it more expensive for farmers to grow food and for consumers to buy it,” Craig says. “Additionally, when American farmers face the inevitable retaliatory tariffs from our trading partners, their profits take a hit.”
While speaking to reporters on Sunday, Trump himself acknowledged the tariffs will cause “some pain.”
That pain could be coming quickly. On Sunday, Canada announced it would impose 25% tariffs on more than $100 billion in U. S. goods. Mexico is expected to announce its tariff response on Monday. Chinses officials also said it also intended to respond with countermeasures.
American Farm Bureau Federation officials note that more than 20% of U.S. agricultural products are exported. Last year, ag exports accounted for $174.5 billion in farmer revenue. The Farm Bureau estimates that every $1 of ag exports results in more than $2 in domestic economic activity.
AFBF President Zippy Duvall says he is alarmed about potential harm to farmers resulting from tariffs. While careful to say that Farm Bureau members support the goals of security and free trade, he says experience shows farmers and rural communities will bear the brunt of the expected economic consequences. Duvall notes that more than 80% of the U.S. supply of potash, a key fertilizer component, 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,” Duvall says.
The U.S. Dairy Export Council notes that retaliatory tariffs from China during the first Trump administration cost dairy farmers an estimated $2.6 billion between 2019 and 2021. USDEC President and CEO Krysta Harden called on the Trump administration to bring all parties to the table and deliver a solution that minimizes unintended consequences to farmers, rural manufacturers and consumers.
“The White House cited the ongoing flow of illicit drugs into the United States as the primary reason behind the imposition of tariffs,” Harden says. “While this legitimate concern needs to be swiftly addressed, we urge discussions between all countries involved to resolve the issues in a manner that preserves the livelihoods of dairy farmers and manufacturers in rural America.”