Global trade tensions are triggering unexpected challenges for the US agricultural sector. Recently, US President Donald Trump raised tariffs on goods from Canada, Mexico, and the Chinese mainland in a bid to reduce the US trade deficit. This decision has prompted swift retaliatory tariffs from key trade partners, setting off a ripple effect across global markets.
In 2024, nearly half of US farm exports—totaling $191 billion—were destined for Canada, Mexico, and the Chinese mainland. The new tariffs have sharply eroded the international price competitiveness of US agricultural products, casting uncertainty over future export prospects.
Farmers now face dual challenges. On one hand, increased tariffs by trading partners are curtailing export opportunities. On the other, rising production costs are compounding financial pressures. For example, about 85 percent of potash fertilizer used in the US is imported from Canada, and any cost surge in this essential input further squeezes profit margins.
Industry voices underscore the severity of the situation. Gregg Taylor, Chief Executive Officer of the USA Poultry & Egg Export Council, warned, "A trade war will only hurt those who depend on international trade for their livelihoods, and US agriculture is first in line to suffer." Similarly, Zippy Duvall of the American Farm Bureau Federation noted that US farmers have endured losses across major crops for three consecutive years, a trend that risks worsening if current conditions persist.
This unfolding trade drama highlights the delicate balance between protective trade measures and sustainable economic growth. As US agriculture grapples with higher costs and diminishing export markets, the global interconnectivity of trade becomes ever more apparent—a lesson with broad relevance for young global citizens, business enthusiasts, and changemakers alike.
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Trump's tariffs hurt US farmers, deepening agricultural burdens
cgtn.com
