Trade is vital for farmers, the American Soybean Association said
Ag industry groups and Agriculture Secretary Brooke Rollins appreciate President Trump’s decision to reduce tariffs on Mexico and Canada for the next month.
The president announced on March 6 that goods in compliance with the USMCA will avoid 25 percent tariffs until April 2.
Other goods will still be subject to a 25 percent tariff. But potash will only be subject to a 10 percent tax.
These tariff pauses and reductions are good news for farmers, Secretary Rollins said.
The American Soybean Association is thankful for this reprieve.
Between 50 and 60 percent of U.S. soybeans are destined for other markets.
Keeping those open is critical to industry success, ASA President Caleb Ragland said.
“Cross-border trade between our three nations is vital for the continued success of U.S. agriculture, and we appreciate the president’s work to protect our sector. We were particularly heartened to see a drop in duties for imports of Canadian potash, on which our farmers rely,” he said in a statement.
The ASA also wants the Trump Administration to work with China to continue the Phase One agreement the two sides signed in 2020.
That deal included Chinese commitments to purchase more U.S. ag products.
The Agricultural Retailers Association (ARA) is especially pleased with the tariff reduction on potash.
A majority of the potash U.S. farmers use comes from Canada.
Reducing the tariff keeps farmers competitive, the organization said.
“Given that the United States sources over 85 percent of its potash from Canada, this exemption is crucial to prevent supply disruptions and cost increases that could adversely affect farmers nationwide,” ARA President and CEO Darren Coppock said in a press release.
The Meat Institute also applauded the tariff reliefs.
U.S. meat producers exported more than $7 billion of meat and poultry products to Canada and Mexico in 2024.
“These are real dollars for livestock producers and the US economy. We appreciate President Trump’s negotiations with Mexico and Canada to keep these key markets open and prevent possible price hikes for consumers,” president and CEO Julie Anna Potts said in a statement.
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