Trump imposes Canada, Mexico, China tariffs Saturday
President Donald Trump said today he would impose hefty new tariffs of 25 percent on goods from Mexico and Canada and 10 percent tariffs on imports from China, and nothing could be done by the three countries to forestall them, Reuters reported. Trump did, however, reference a potential carve out for oil from Canada, saying that rate would be 10 percent versus the 25 percent planned for other goods from the United States’ northern neighbor.
But he indicated wider tariffs on oil and natural gas would be coming in mid-February, remarks that sent oil prices higher, Reuters added. Leslie Sarasin, president and CEO of FMI — The Food Industry Association, said, “With 1.6 percent retail and 7.5 percent food manufacturing net margins, tariffs will put incredible pressure on our members. New tariffs will also drive up the cost of doing business and food prices at a time consumers are extremely concerned about prices.”
Sarasin added, “FMI and our member companies stand ready to work with the Trump administration to help reduce inflationary regulations and improve the buying power of American consumers. American consumers value local farmers and local food products, but also availability of products 12 months of the year, which requires imports of food products.
“American Farm Bureau Federation President Zippy Duvall sent Trump a letter today expressing concern that new tariffs levied against Canada, Mexico and China may inadvertently create financial hardships for U.S. farmers and ranchers. “Last year, the U.S. exported over $30 billion in agricultural products to Mexico, $29 billion to Canada and $26 billion to China — our top three markets by value combined for half of total agricultural exports,” the letter states.
“Any effort to impose additional tariffs on these nations’ imports runs the risk of significant retaliatory measures against U.S. agricultural exports.”
We ask that you carefully consider the impact on American farmers and ranchers, associated businesses and rural communities when determining potential trade actions. For decades, American agriculture has strongly supported efforts to open the world to our agricultural and other trade products.”
Duvall also pointed out that more than 20 percent of U.S. agricultural agricultural products are exported. At the Farm Bureau convention in San Antonio this week, Canadian officials had a booth in which they pointed out to Farm Bureau members that U.S. and Canadian agriculture are highly integrated, with pigs, turkeys and cattle moving across the border, sometimes several times in their lives.
If tariffs are imposed with each move, they will affect consumer prices, the Canadian officials said. National Farmers Union President Rob Larew said in a news release, “The trade actions announced by the president will almost certainly trigger significant retaliation against U.S. agricultural products.”
“This comes at a time of deep uncertainty for farmers—commodity prices are volatile, input costs remain high, and we still lack an updated farm bill,” Larew said.
“One thing is clear: American family farmers and ranchers are always the first to bear the brunt of unilateral trade actions. While we support efforts to hold trading partners accountable and strengthen American manufacturing, our members have already suffered heavy losses from past trade disputes, especially with China, and have lost valuable market access.
“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.
–The Hagstrom Report
