Private Treaty February 2025
Pacific Cattle Angus, Sim-Angus, and Simmental range-raised production fall bulls available by PRIVATE TREATY FEBRUARY 2025 Carl Wisse • carl@pacificcattle.com www.pacificcattle.com • 509-539-6850 • Eltopia, WA
Published 9:09 am Monday, February 3, 2025
President Donald Trump’s new tariffs on Canadian and Mexican products have the U.S. farm industry bracing for the “brunt of retaliation” from those countries.
Citing “the flow of illicit drugs like fentanyl … through both illicit distribution networks and international mail,” Trump declared an economic emergency and on Saturday put duties of 25% on imports from Mexico and Canada, with limited exceptions, and 10% on all imports from China.
Canada and Mexico both announced they would impose retaliatory tariffs.
However, on Monday Trump and Mexican President Claudia Sheinbaum agreed to terms that would put tariffs on that country on hold for 30 days. Sheinbaum agreed to send 10,000 troops to the border to help stem the flow of illegal drugs.
Trump also said he planned further talks with Canadian Prime Minister Justin Trudeau.
Nonetheless, representatives of U.S. ag groups had strong reactions to the announced tariffs.
“Farm Bureau members support the goals of security and ensuring fair trade with our North American neighbors and China, but, unfortunately, we know from experience that farmers and rural communities will bear the brunt of retaliation,” American Farm Bureau Federation president Zippy Duvall said in a press release. “Harmful effects of retaliation to farmers ripple through the rest of the rural economy.”
More than 80% of the U.S. supply of a key fertilizer ingredient, potash, 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 stated.
The fertilizer industry said it would seek exemptions from the tariffs.
“The Fertilizer Institute stands ready to collaborate with the Trump Administration to spur growth in the fertilizer industry, support U.S. agriculture and ensure affordable food prices for everyday Americans,” president and CEO Corey Rosenbusch said in a press release.
“However, given their effects on the broader farm economy, FI urges the Trump administration to exempt Canadian potash and other fertilizers from the tariff order, especially as we approach the critical time of spring planting where nutrient delivery and application are essential …”
The U.S. relies on imports for more than 95% of its potash fertilizer needs, with nearly 90% coming from Canada, according to the institute. Canada also supplies farmers more than 8% of nitrogen fertilizer needs, accounting for 25% of U.S. nitrogen fertilizer imports.
No supplements exist for potash as an essential plant nutrient, the institute stated.
National Farmers Union president Rob Larew said the trade actions announced by Trump will almost certainly trigger “significant retaliation” against U.S. agricultural products amid “deep uncertainty” for farmers.
“Before taking any action that might further stress farm and rural economies, we urge the president to put a plan in place to protect and support family farmers and ranchers,” Larew said in a press release.
Bob Hemesath, chairman of the Farmers of Free Trade board, noted that Canada, Mexico and China together buy half of all American ag exports.
“Placing tariffs on the three largest export markets for American farmers and ranchers, particularly for an extended period of time, will have severe consequences,” he said in a press release.
American farmers are already struggling with record-high input costs, declining prices and high global supplies, Hemesath said. Farmers will bear the heaviest burdens from retaliation and be an “immediate target” for steep reciprocal tariffs, and be put at a disadvantage to competitors across the world, he added.
“Mexico and Canada have been partners in trade agreements that have grown U.S. ag exports to those countries by nearly 300% over recent decades,” Hemesath stated. “The President delivered for farmers through (the U.S.-Mexico-Canada Agreement), strengthening the agreement. Under tariffs, that market growth could wither away.”