Ag leaders breathed a sigh of relive Thursday after President Donald Trump signed two executive orders suspending 25% tariffs on imports from Canada and Mexico. The order applies to goods subject to the terms of the U.S.-Mexico-Canada trade agreement. Those tariffs are now scheduled to go into effect on April 2.
Trump also reduced the tariff on potash imports not subject to USMCA from 25% to 10%. Potash is a key fertilizer ingredient. The U.S. imports approximately 85% of its potash supply from Canada.
Shortly after Trump signed his executive orders, Agriculture Secretary Brooke Rollins took to social media, thanking the president for lowering the potash tariff. She says it will keep negotiations on track and ensure farmers can buy fertilizer at the lowest price possible during the height of planting season.
A source close to the situation told Farm Progress that Rollins was actively involved in discussions with the White House, pushing for those carve outs on behalf of American farmers and ranchers.
Online, the secretary went on to say that Canada Prime Minister Justin Trudeau, who she referred to as “Governor,” has been put on notice. She said his nation must change its “broken” dairy policy and open markets to U.S. products.
“Gone are the days when the U.S. caved to nations that took advantage of us,” Rollins posted. “American farmers compete fairly, and now Canada must do the same.
Rollins later thanked Trump again in a USDA press relief, calling his decision a “smart, strategic move.”
Ag groups encouraged
Trump’s decision came after numerous trade groups issued public statements calling on him to end the brewing trade war as soon as possible. To underscore the discontent coming from farm country, House Agriculture Committee Democrats released a long list of comments Thursday highlighting pushback Trump was getting from agriculture. Among those calling on Trump to reverse course was U.S. Dairy Export Council CEO Krysta Harden, who called exports “fundamental to the health of the U.S. dairy industry,” noting that one day’s milk production out of six is destined for international customers.
American Farm Bureau President Zippy Duvall noted U.S. farmers exported more than $83 billion in ag products to Canada, Mexico and China last year. He says AFBF appreciated the delay and has been working with the White House, USDA and the U.S. trade representative to highlight the potential impact tariffs could have on farmers facing three straight years of losses for almost all major crops.
American Soybean Association President Caleb Ragland said ASA appreciated the Trump administration’s decision to pause tariffs on Canada and Mexico and to lower tariffs on potash. He encouraged the administration to immediately engage with officials in China to pursue continuation of the trade agreement Trump negotiated and signed in 2020.
“Instead of a tit-for-tat trade war, U.S. soybean farmers support engaged negotiations by the Trump administration to bring about commitments to expand market access in China and protect farmers from retaliation,” he said. “This is especially critical considering the current challenging farm economy.”
As of Friday morning, Trump had not announced plans to pause any tariffs on China. The president has also not elaborated on how he plans to impose tariffs on “external agriculture” next month. For now, farmers seem generally pleased that tariffs on Canada and Mexico are on hold for a few weeks. Now, all eyes will be focused on what Trump expects in return to make the pauses permanent.