Trump delays Mexico, Canada tariffs under USMCA

WASHINGTON — President Donald Trump temporarily suspended across-the-board 25% tariffs on imports from Mexico and Canada until April 2.

The move applies to goods subject to the U.S.-Mexico-Canada Agreement terms that includes 38% of all imports from Canada and nearly half of all imports from Mexico.

Trump also reduced the tariff on potash imports from Canada from 25% to 10%. Potash is not part of the USMCA. Eighty-five percent of the U.S. potash imports are from Canada.

As of March 7, there were no plans by the administration to pause the 20% tariffs on goods from China.

The three countries declared they would impose retaliatory taxes on U.S. products that would impact a wide array of U.S. ag exports including corn, soybeans, pork, beef and poultry, among other products.

Since the North American Free Trade Agreement was ratified in 1993 and then continuing under USMCA, which was signed into law in January 2020, Mexico and Canada have developed into major trading partners for soybeans, the top U.S. agricultural export.

Mexico is the second-largest customer for whole soybeans, soybean meal and soybean oil. Canada is U.S. soy’s fourth-largest customer for soybean meal.

About half of U.S. soybean exports are shipped to China, totaling nearly $12.8 billion in trade in 2024, according to the U.S. Census Bureau.

According to the National Corn Growers Association, exports are responsible for 33% of U.S. corn farmers’ income.

The U.S. Grains Council estimates that in marketing year 2023-2024, exports of corn and corn products, including ethanol, distiller grains, red meat and poultry, totaled over 5 billion bushels, about one-third of the nation’s corn production that year.

Importers from Mexico, the top foreign market for U.S. corn, have committed to purchase about 637 million bushels this marketing year — about 44% of total commitments from known purchasers.

As the planned new tariffs were rolled, agriculture leaders expressed concern of the increased duties on the top three U.S. ag trade partners.

Reactions

“Farmers are frustrated. Tariffs are not something to take lightly and ‘have fun’ with. Not only do they hit our family businesses squarely in the wallet, but they rock a core tenet on which our trading relationships are built, and that is reliability.

“Soybean producers face huge, disproportionate impacts from trade flow disruptions, particularly to China, which is our largest market. And we know foreign soybean producers in Brazil and other countries are expecting abundant crops this year and are primed to meet any demand stemming from a renewed U.S.-China trade war.

“Soybean farmers still have not fully recovered market volumes from the damaging impacts of the 2018 trade war, and this will further exacerbate economic hardship on our farmers. During the 2018 trade war with China, U.S. agriculture experienced over $27 billion in losses, with soybeans accounting for 71% of those losses. Soy farmers continue to struggle with long-term reputational impacts, as the markets they worked for years to build — over 40 years for China — are grounded in being able to supply a reliable, quality crop.

“Unlike in 2018, farmers are in a more tentative financial situation in 2025. Commodity prices are down nearly 50% from three years ago. And, they are operating their farms during a time when costs for land and inputs like seed, pesticides and fertilizer are high, meaning much slimmer margins and less savings to draw from when tariffs make circumstances go south.

“We encourage the administration to immediately engage with its counterparts in China to pursue a continuation of the Phase One trade agreement negotiated by President Trump and signed in 2020. The Phase One agreement brought much-needed tariff relief for farmers while addressing issues pertaining to market access, intellectual property protections and other issues important to U.S. agriculture and our country at large.”

Caleb Ragland, president

American Soybean Association

“Farmers are facing a troubling economic landscape due to rising input costs and declining corn prices. We ask President Trump to quickly negotiate agreements with Mexico, Canada and China that will benefit American farmers while addressing issues important to the United States. We call on our trading partners to work with the president to resolve these issues so that we can restore vital market access.”

Kenneth Hartman Jr., president

National Corn Growers Association

“A stable and affordable supply of fertilizers is critical to maintaining the global competitiveness of U.S. farmers, strengthening rural economies and keeping food prices in check. TFI continues to urge the administration to provide a strategic carve-out for Canadian fertilizers from these tariffs, including through designation as critical minerals.

“With the spring planting season fast approaching and U.S. agriculture continuing to face serious headwinds, maintaining reliable and cost-effective fertilizer supply chains is essential to ensuring a productive harvest and protecting American farmers from unnecessary financial strain.

“An open, fair, predictable and transparent trade environment between the U.S. and Canada is vital to supporting a strong, competitive fertilizer industry that meets the needs of American growers. Restrictions on this critical cross-border trade will drive up costs for farmers, which could ultimately be felt at the grocery store by consumers.”

Corey Rosenbusch, president and CEO

The Fertilizer Institute

“The Mexico, Canada and China three markets accounted for $8.4 billion in U.S. red meat exports last year, including nearly $4 billion to Mexico. While the U.S. is the primary supplier of pork and beef to Mexico, U.S. red meat has already been facing heightened competition in this critical market.

“Last year, U.S. beef exports equated to more than $415 per fed steer or heifer slaughtered and pork exports equated to more than $66 per head slaughtered. These exports, a large share of which are underutilized cuts and variety meat, help producers maximize the value of every animal produced and allow U.S. consumers to enjoy more of the cuts they prefer.”

Dan Halstrom, president and CEO

U.S. Meat Export Federation

“As Indiana’s soybean and corn farmers begin to prepare for the spring planting season, they are closely watching lower bushel prices and higher input costs. This year’s crop was already shaping up to be a challenge, but with the added complication of increased tariffs, farmers fear that fewer exports will lead to higher stocks and even lower bushel prices.”

Brian Warpup, chair

Indiana Soybean Alliance Membership and Policy Committee

“We urge Indiana’s congressional delegation to work with the Trump administration to resolve these trade issues so that Indiana farmers can continue to export corn and soybeans to critical markets such as China, Mexico and Canada.”

Chris Cherry, president

Indiana Corn Growers Association

“We remain deeply concerned with the use of tariffs and their potential to spark retaliation on America’s farmers. Illinois farmers’ products — from grains and feed, corn, soybeans, ethanol, beef, pork and more — rely on access to foreign markets and will undoubtedly be impacted by these new tariffs either through increased prices or decreased market access.

“This uncertainty coupled with an already struggling farm economy has farmers worried as we head into planting season.

“Illinois is the third largest exporter of agricultural commodities in the U.S. Total exports from Illinois in 2023 were estimated at $81 billion, of which $13.7 billion was attributed to agriculture.

“According to the USDA Global Agricultural Trade System in 2024, Illinois accounted for over $12.4 billion of agricultural product exports, including $3.6 billion worth of products to Mexico ($2.5 billion) and Canada ($2.1 billion).

“Similarly, according to the U.S. Department of Commerce, in 2024 Illinois accounted for over $784 million in agricultural product imports, including $542 million worth of products from Canada ($314 million) and Mexico ($228 million).”

Brian Duncan, president

Illinois Farm Bureau