U.S. Farmers Hit By Tariffs Must Be Propped Up

American farmers are facing a double blow—squeezed both by U.S. tariffs and retaliatory measures from major trade partners.

Farmers will be hit by the 25% tariffs on imported materials they rely on, as well as retaliatory measures from Mexico, Canada, and China on agricultural exports.

This round of levies could be even more damaging than those imposed during President Donald Trump’s first term, potentially costing the government even more in subsidies to keep farmers afloat, Barron’s Daily’s Evie Liu and Brian Swint reported.

Farmers will be hit by the 25% tariffs on imported materials they rely on, as well as retaliatory measures from Mexico, Canada, and China on agricultural exports.

Beijing has already imposed a 10% tariff on U.S. agricultural goods, with plans to raise it to 15% starting March 15. Canada’s countermeasures include a 25% tariff on products such as orange juice, peanut butter, wine, spirits, beer, and coffee.

Mexico is expected to announce its retaliatory tariffs soon.

These three countries represent the largest export markets for U.S. agricultural products, and their tariffs will likely push buyers toward alternative suppliers such as Brazil. During Trump’s last trade war in 2018, U.S. agricultural exports to China were cut in half, falling below $10 billion.

The sector suffered more than $27 billion in losses.

At the time, the Trump administration provided billions of dollars in subsidies to compensate farmers, and it may be forced to do the same again. However, compared to 2018, American farmers are in an even weaker financial position.

There is speculation that Trump may carve out exemptions for certain agricultural products, similar to the reprieve granted to automakers.

Bloomberg reported late that specific exemptions—possibly for fertilizer—are under consideration. This suggests that, in the end, Trump may have to retreat from his tariff strategy.