The retaliatory duties imposed on U.S. farm exports as a result of the Trump administration’s tariffs cost the American ag sector $27 billion from mid-2018 through 2019, according to a new analysis by USDA’s Economic Research Service.
The study shows that U.S. soybean, sorghum and pork exports were the hardest hit by the retaliatory tariffs, and farmers in the Midwest bore the majority of those losses.
The U.S. first levied Section 232 tariffs on a slew of countries to punish them for steel and aluminum exports to the U.S., a situation the U.S. said was threatening national security. Next, the U.S. hit China with Section 301 tariffs after talks for a trade deal faltered.
Canada and Mexico were at first spared the Section 232 tariffs, but that changed when trade negotiations to rewrite the North American Free Trade Agreement soured.
Both Mexico and Canada retaliated, but the Mexican tariffs hit U.S. ag particularly hard. Mexico levied new import taxes on U.S. cheese, pork, potatoes, apples and other commodities. The tariffs started out as 10-15% and then rose to 20-25%.
The U.S. cancelled the Section 232 tariffs on Mexico and Canada after a deal was reached on the FTA. The Mexican and Canadian tariffs also ended, but retaliatory duties levied by China are still in place.
March 20, 2014
September 30, 2017