Recent retaliatory tariffs imposed by Canada, China, and Mexico—the top three markets for U.S. agricultural exports—have cast a shadow over the $191 billion industry. With nearly half of all U.S. farm exports flowing to these countries, experts warn the escalating trade measures could destabilize an already vulnerable sector.
Input Costs Surge as Global Markets Shrink
President Donald Trump’s March decision to hike tariffs on imported goods has triggered immediate pushback, with trading partners targeting U.S. agricultural products. Analysts Li Chunding and Zhou Yanni of China Agricultural University note that the move has eroded price competitiveness abroad while increasing domestic production costs. Critical inputs like Canadian potash fertilizers—which supply 85% of U.S. needs—face potential price spikes, compounding financial pressures on farmers.
Export Cancellations Signal Growing Risks
Western Growers reports canceled orders from Canadian buyers, while poultry exporters describe shrinking margins. 'Trade wars hurt those dependent on global markets—and agriculture is first in line,' said Gregg Taylor of the USA Poultry & Egg Export Council. U.S. corn and soybean producers, already facing three consecutive loss-making years, now grapple with dwindling overseas demand and domestic oversupply risks.
Sustainability Concerns Emerge
American Farm Bureau Federation President Zippy Duvall warns that rising operational costs and contracting export opportunities could push some farmers beyond breaking point. As imported equipment and chemicals become pricier, analysts caution that short-term protectionism may undermine long-term competitiveness in global markets. Stakeholders urge policymakers to balance trade objectives with measures supporting farm viability.
