Apr 2, 2025

Ag industry prepares for impact of new round of tariff turmoil

The agriculture industry is bracing for the impact of additional tariffs unveiled April 2 by U.S. President Donald Trump. The new measures include a tariff rate of 10% on all imports that goes into effect April 5, according to multiple reports.

Higher duties will be charged against countries that levy higher rates on the U.S., while Trump said 25% tariffs on auto imports will begin Thursday at 12:01 a.m.
Trump had previously vowed “reciprocal” measures on imported goods from a range of countries with tariffs on U.S. goods.

U.S. stocks declined in post-close trading after the announcement late Wednesday afternoon. S&P 500 Futures, which allow an investor to hedge with or speculate on the future value of various components of the S&P 500 Index market index, fell 2.2% during the announcement, the Wall Street Journal reported.

Potential produce fallout

Cucumbers, along with a long list of fruits, were among U.S. goods targeted in the first phase of retaliatory tariffs announced March 4 by Canada.

Last month, Canada’s Department of Finance announced 25% tariffs on a list of U.S. goods worth $30 billion in a rapid response to 25% tariffs levied by the Trump administration March 4 on Canadian and Mexican goods.

Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, said in a statement that an additional list of $125 billion in goods was open for a 21-day comment period and would be imposed “should the U.S. continue to apply unjustified tariffs on Canada.”

Canada’s first-phase list includes chilled or fresh tomatoes, fresh or dried citrus fruit, raspberries, blackberries, melons, apricots, cherries, peaches and plums.
Potatoes appear twice on Canada’s additional list as fresh or chilled, seed and fresh or chilled, other.

Canadian Prime Minister Mark Carney told Trump last week that his nation would retaliate with tariffs of its own if Trump carried through on his tariff threat, according to CNN. Other countries, including Japan, China and Korea, signaled intentions to impose retaliatory measures.

The U.S. tariffs announced March 4 were paused two days later with exemptions which applied to goods compliant with the United States-Mexico-Canada Agreement and included fresh and processed potatoes.

As more than 20% of farm income comes from exports, and farmers rely on imports for crucial supplies including fertilizer and specialized tools, the American Farm Bureau Federation (AFBF) contends the additional tariffs will take a toll on America’s farmers.

“Trade is critical to the success of farmers and ranchers across the country,” Zippy Duvall, AFBF’s president, said in a news release. “We share the administration’s goal of leveling the playing field with our international partners, but increased tariffs threaten the economic sustainability of farmers who have lost money on most major crops for the past three years.”

The International Fresh Produce Association will hold a virtual town hall on April 4 for organization members to discuss the latest tariff policy shifts.

Also on April 4, North Dakota State University Extension will play host to a special edition of its monthly Agricultural Market Situation and Outlook webinar series to discuss the potential effects of tariffs on North Dakota agriculture.

IFPA issued statements last month in response to the tariff turmoil.

“IFPA is committed to advocating for policies that support fair and thriving international trade and will continue engaging with the administration, media and industry,” the organization said March 6. “Given the essential role of fresh produce in supporting Americans’ health and nutrition, IFPA will actively seek exemptions for these products wherever the implementation process permits. Additionally, IFPA will continue providing the administration with data on tariffs’ impact on the produce supply chain to inform policy decisions.”

AFBF encourages the administration to work toward a swift resolution to trade disagreements to avoid tariffs that put farmers and ranchers in the crosshairs of retaliation.

“Tariffs will drive up the cost of critical supplies, and retaliatory tariffs will make American-grown products more expensive globally,” Duvall said in the release. “The combination not only threatens farmers’ competitiveness in the short-term, but it may cause long-term damage by leading to losses in market share.”