Editor’s Note: On Thursday, March 6th, Trump paused tariffs on some Canadian goods, but only those that qualify under the U.S.-Mexico-Canada Agreement (USMCA/CUSMA). Steel and aluminum tariffs are still set for next week, and reciprocal tariffs are on for April 2, 2025.
While many American farm groups remain publicly silent, some U.S. agriculture organizations are voicing concerns about the Trump administration’s move to slap tariffs on imports from Canada, Mexico, and China this week.
“Tariffs Are Not ‘Fun’ & Farmers Are Frustrated” was the headline on a news release on Tuesday from the American Soybean Association, which represents nearly half a million soybean growers across the country.
The ASA was responding to a social media post by President Trump, and a subsequent mention in his speech to Congress on Tuesday night, telling farmers to “have fun!” with additional import tariffs to take effect on April 2nd.
“Farmers are frustrated. Tariffs are not something to take lightly and ‘have fun’ with. Not only do they hit our family businesses squarely in the wallet, but they rock a core tenet on which our trading relationships are built, and that is reliability,” said Caleb Ragland, American Soybean Association president and soy farmer from Magnolia, Kentucky.
Soybean producers will face disproportionate impacts from trade disruptions, noted Ragland, with soy being America’s largest agricultural export. China and Mexico are the top two customers for U.S. soybeans and soy products. Canada is the fourth-largest customer for soybean meal, which the Canadian government has proposed applying a 25 per cent retaliatory tariff on starting later this month.
“We know foreign soybean producers in Brazil and other countries are expecting abundant crops this year and are primed to meet any demand stemming from a renewed U.S.-China trade war,” said Ragland. “Soybean farmers still have not fully recovered market volumes from the damaging impacts of the 2018 trade war, and this will further exacerbate economic hardship on our farmers.”
American Farm Bureau president Zippy Duvall was slightly less direct, but issued a statement saying farmers and ranchers are concerned with the decision to raise tariffs.
“Farmers support the goals of ensuring security and fair trade with other nations, but additional tariffs, along with expected retaliatory tariffs, will take a toll on rural America,” noted Duvall.
Adding 25 per cent tariffs to potash fertilizer coming from Canada while opening the door to retaliation on American exports “could create an economic burden some farmers may not be able to bear,” he said.
“We ask the president to continue working with our international partners to find ways to resolve disagreements quickly, so farmers can focus on feeding families in America and abroad,” continued Duvall.
National Corn Growers Association president and Illinois farmer Kenneth Hartman Jr. also called for quick resolution.
“Farmers are facing a troubling economic landscape due to rising input costs and declining corn prices,” said Hartman Jr. “We ask President Trump to quickly negotiate agreements with Mexico, Canada and China that will benefit American farmers while addressing issues important to the United States. We call on our trading partners to work with the president to resolve these issues so that that we can restore vital market access.”
The Agricultural Retailers Association (ARA) and The Fertilizer Institute, which represents the U.S. fertilizer industry, echoed the same concerns.
“The 25 percent tariffs on critical fertilizer imports from Canada, including potash, ammonium sulfate, nitrogen fertilizers and sulfur, will drive up the cost of production for U.S. farmers. These costs ripple throughout the agriculture community, ultimately leading to higher prices at the grocery store,” said the retail and fertilizer organizations, in a joint statement.
“We urge continued engagement between the U.S. and Canada to resolve the outstanding border security issues, and barring a quick agreement, we request the Trump administration to provide a strategic carve out from the tariffs, which should also include critical minerals designation for potash as well as phosphate,” they continued.
Responding to the Trump administration imposing 25 per cent tariffs on Tuesday, the Canadian government implemented an initial tranche of 25 per cent tariffs on $30 billion worth of imports from the U.S.
Finance Canada also published a longer list of products that could face a 25 per cent tariff after a three-week comment period — imports worth an additional $125 billion. The list includes many agricultural commodities from the U.S., including fertilizer, ethanol, biodiesel, corn, soy, cattle, beef, pork, machinery, seed, and more.
