Tariffs
Tariffs, also known as taxes on imported goods, are a tool used by President Donald Trump as part of his overall economic vision. As U.S. agriculture navigates tariffs and their implications on trade, commodity prices, input costs and more, ag economists and farmers remain divided on the effectiveness of tariffs and what the changes mean for the broader economy and livelihoods.
Rising tariffs between the U.S. and China are putting pressure on key dairy exports like whey and lactose, sparking concern over the potential of lost sales and falling prices.
In recent discussions surrounding trade policies and tariffs, the dairy industry has been notably affected. Rick Naerebout, CEO of the Idaho Dairymen’s Association, reflect on how the Trump 2.0 approach closely mirrors Trump’s earlier strategy, aimed at extracting concessions from trade partners.
After China retaliated with its own tariffs, the U.S. said on Tuesday that 104% duties on imports from China would take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by Trump’s sweeping tariff plan.
President Trump has announced a series of reciprocal tariffs, scheduled to start over the next few days, on some of agriculture’s most significant trade partners. The outcomes could be a net positive for dairy producers, some industry members say.
In a Wednesday morning press conference, ahead of Trump announcing his global tariff plan, Sheinbaum says Mexico will “announce a comprehensive program, not a tit for tat on tariffs,” but added, “we have a plan to strengthen the economy under any circumstance.”
The downturn in the ag economy has everyone from farmers and ag lenders to even ag economists concerned. Waning optimism is an overriding theme for the row crop side of agriculture, yet some farmers hope President Donald Trump’s tough stance on trade can get the ag economy back on track longer-term.
With tariffs and trade in focus again, a recent AgWeb poll asked farmers if they support President Donald Trump’s use of tariffs as a negotiating strategy.
The majority of respondents in the March Ag Economists’ Monthly Monitor agree the U.S. is currently in a trade war, but who wins? Ag economists say it’s not the U.S., Canada or Mexico but rather Brazil that could come out on top.
If the dollar falls far enough, dairy exports could still be competitive even with retaliatory tariffs.
Tariff whiplash is consuming the commodity markets — and the possible impact is stirring up quite the debate. At present, President Trump says he’s sticking to his plan to impose additional tariffs on Canada, Mexico and China starting April 2.
While many farmers are comparing the current threats of tariffs and trade wars to the situation they endured in 2018, Joe Vaclavik believes this time will be better.
It was a noisy week with tariff uncertainty, and the markets remain on edge to see what next week brings.
Cheese and butter are clear deals in the export space — but some traders indicate that tariff uncertainty has given them a reason to pause on what would normally be lucrative purchases.
Mexico’s president said on Tuesday the country will respond to U.S. tariffs with a 25% tariff on U.S. goods, but she will hold off announcing the targeted products until Sunday.
At a pivotal junction of prosperity intertwined with uncertainty, the U.S. dairy industry seeks resolution to ongoing trade disputes. With committed leaders aiming to expand international partnerships, strategic negotiation appears essential for sustaining and enhancing the industry’s growth.
U.S. tariffs are in full effect with Canada, Mexico and China, contributing to the already heavy atmosphere.
Tariffs set to take effect tomorrow may have contributed to market movement, while increased cheese production capacity continues to weigh on the outlook.
Trump said Monday that his planned 25% tariffs on all Mexican and Canadian exports to the U.S. “are going ahead on time, on schedule,” meaning the duties would take effect on March 4 at the conclusion of a one-month suspension.
Both domestic and foreign buyers step back from potential trade war.
U.S. cheese exports surged ahead in December, totaling 96.7 million pounds.
As the industry braces itself for a tumultuous road ahead, it is crucial for stakeholders across the board to engage in constructive dialogue and seek resolutions that protect the backbone of rural America – our dairy farmers.
“It’s unlikely that changes in tariffs will impact prices headed into the Super Bowl, however, we’ll see how it plays out in the coming weeks,” Dr. Michael Swanson says.
Trump recently signed three executive orders imposing tariffs on Canada, Mexico and China. This marks the first time a president has used powers granted under the International Emergency Economic Powers Act of 1977.
Just hours before the tariffs were set to take effect, Mexican President Claudia Sheinbaum announced the news on X, and President Donald Trump later confirmed. Mexico is the top destination for U.S. ag exports. The announcement from Canada came later on Monday.
Following President Trump’s decision to impose 25% tariffs on Canada and Mexico, Canada announced its own 25% tariffs on $155 billion worth of U.S. imports. Mexico also announced its own retaliatory measures, but no specifics were unveiled as of Sunday morning.
Ramped up conversations around possible 25% tariffs on Mexico and Canada plus 10% tariffs on Chinese goods sent the cheese market sharply lower last night and weakness continued through today’s session.
Speaking from the Oval Office, Trump justified the tariffs as a response to what he described as excessive migration, drug trafficking and unfair trade practices. While he suggested the tariff rate could further increase, he indicated a decision on whether oil imports would be exempt would come soon.
Some economists think agriculture is in a recession. Arlan Suderman, chief commodities economist for StoneX, is one of them. However, he believes comparisons to the 1980s are misguided.
Trump said he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate a free-trade deal.
In response to John Deere’s recent announcement about moving some of its production to Mexico, Trump expressed concern about the impact on American workers, stating, “It’s hurting our country. It’s hurting our workers.”