Ag News

AFBF: Tariffs hit farmers' and ranchers' imports and exports

According to an AFBF Market Intel report published April 4, U.S. farmers and ranchers could be hit both as producers and as consumers under a slate of tariffs announced by President Donald Trump on April 2.

He has since announced a 90-day “pause” on reciprocal tariffs, a move applauded by AFBF, though the pause does not apply to goods imported from China.

“Farm Bureau appreciates President Trump’s decision to pause the reciprocal tariffs on dozens of America’s trading partners for 90 days. We have been engaging directly with the White House, U.S. Trade Representative and U.S. Department of Agriculture to emphasize the toll tariffs will take on America’s farmers and ranchers, who are already strapped because of high supply costs and shrinking paychecks. Creating more market challenges puts at risk more than 20% of U.S. farm income. We’re encouraged that those concerns are being heard,” said AFBF President Zippy Duvall.

“While the pause brings some temporary certainty, questions remain about the long-term competitiveness for farmers in the global marketplace. We encourage the administration to swiftly resolve trade disputes and to pursue strategies that will ensure America’s farmers can continue to stock the pantries of families here at home, and abroad.”

To read the entire Market Intel report, visit https://www.fb.org/market-intel/understanding-the-new-tariffs.

Farmers and ranchers, like all Americans, will be paying more for many of the products they purchase, from seed for vegetable growers to tractors and other equipment made of steel. Some exemptions for products including potash and peat, which were hard fought for by agricultural organizations such as the American Farm Bureau Federation, are a testament to the effectiveness of farmers’ and ranchers raising their collective voice. Analysis by the Tax Foundation reports the tariffs applied in 2025 will result in an average tax increase of more than $1,900 for every U.S. household annually, which would be the largest tax hike in 43 years, if negotiations are not initiated and resolved quickly.

Retaliatory tariffs imposed by U.S. trading partners make American products more expensive than products from countries not facing such tariffs, thereby lowering demand for the more than 20% of U.S. agricultural production that is exported. Before the tariff announcement on April 2, Canada and China already had retaliatory tariffs on $27 billion of U.S. agricultural exports. As of April 4, China, our third-largest agricultural export market, has already announced an additional 34% retaliatory tariff on all U.S. exports effective April 10. As new retaliatory tariffs stack on top of old ones, the total applied tariff for agricultural products in China will rise even higher. For example, the total retaliatory tariffs rise to 71.5% for soybeans, 74% for in-quota cotton and 99% for frozen swine offal. With the simultaneous increase of input prices and decrease in demand, farmers who are already in financial distress will further feel the squeeze.

Longer-term, farmers may also see demand reduction as our economy struggles to cope with these major changes. The volatility of the tariff policy decisions, with new tariffs frequently being announced, paused and placed will take a toll on the American agricultural industry, as on the rest of the economy. Farmers and ranchers suffer from instability, as their soundest business decisions can be turned upside down. If these tariffs lead rapidly to new agreements with new market access, they may help our farmers. In the meantime, without direct support from USDA or a farm bill with an updated safety net, farmers will almost certainly bear the brunt of these tariffs, as they always seem to do.

---

• Categories:

• Tags:

---