Trade
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.
The ongoing discourse between the U.S. and Canada underscores a critical need for diplomatic negotiations to address trade barriers.
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.
As we move through 2025, the dairy industry is poised to experience significant transformations. According to Ben Laine, a senior dairy analyst with Terrain, there are three major structural changes that are intricately linked and set to shape the industry’s landscape: federal milk marketing orders, new cheese processing capacity, and trade dynamics.
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.
President Trump’s new tariffs on imports from Canada, Mexico and China have gone into effect. While the economic consequences are unknown, Secretary of Agriculture Brooke Rollins has promised to have a plan ready for farmers, if needed.
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.
China retaliated swiftly on Tuesday with 10% to 15% retaliatory levies impacting $21 billion worth of U.S. agricultural and food products, moving the world’s top two economies a step closer toward an all-out trade war.
While Canada and Mexico have taken measures to address U.S. concerns, China’s response remains muted, potentially setting the stage for further trade tensions.
President Trump says tariffs on goods from Canada and Mexico will now take effect on April 2, 2025.
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.
Since being confirmed on Feb. 13, Secretary Rollins has been in the Washington D.C., USDA office for a few hours. Most of her time has been spent visiting farmers, ranchers and ag businesses in Kentucky, Kansas and at Top Producer Summit.
Secretary of Agriculture Brooke Rollins kicked off the 2025 Top Producer Summit on Tuesday morning, detailing her plan to advocate for trade. ‘We want to find market access for all our products,’ Rollins said.
These customized levies, expected to be finalized by April, are designed to rebalance trade relationships and target unfair practices, including subsidies, regulations, and exchange rate manipulation.
The measures, effective March 12, eliminate country-specific exemptions and extend to downstream steel and aluminum products, affecting key suppliers such as Canada, Mexico, Brazil, and South Korea.
“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.
U.S. farmers and various trade groups are very apprehensive about not only the potential negative impacts of tariffs on the U.S. ag sector, but what they do to garner new trade agreements.
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.
Sec. Mike Naig says the U.S. government is using what he describes as a three-legged stool approach to address the virus in the dairy and poultry industries.
During her confirmation hearing, she emphasized her dedication to agriculture and addressed her stance on ethanol, the Renewable Fuel Standard, tariff impact aid for farmers and Prop 12.
President Donald Trump signed several executive orders on stage at a rally in Washington, D.C.'s Capital One Arena on Monday, immediately following inauguration. It marked a dramatic and public start to his administration.
As Donald Trump is sworn in as the 47th president, he’s not expected to impose China-specific tariffs on his first day in office, signaling a strategic shift toward engagement with Beijing rather than reigniting a trade war.
Treasury Secretary nominee Scott Bessent outlined a three-pronged approach to tariffs during his Senate testimony this week, including targeted tariffs, general tariffs as revenue generators and tariffs as a negotiation tool.
Trump has long expressed interest in purchasing Greenland, a Danish territory, describing it as “absolutely necessary” for U.S. security. He also raised concerns over the Panama Canal, claiming its current operation by Chinese interests undermines American control of a critical trade route.
Canada is preparing for potential trade challenges following Trump’s threat of a 25% tariff on Canadian imports. The Canadian government is considering a proactive approach, including the possible early release of a retaliatory tariff list.