Ag Tarriff Update

August 1 is the new deadline for implementation of country-specific tariffs, as well as new tariffs against the European Union, Mexico, and Brazil, as announced by the Trump administration. Dave Samuelson, American Farm Bureau Federation, senior director of government affairs,

“Giving many countries more time to negotiate deals with the US to lower tariffs, and certainly in agriculture, we hope to reduce barriers and increase our opportunities to export our products.”

When it comes to impacts to farmers as a result of these proposed tariffs,

“I think you'd get a couple of impacts. One their products coming in here, of course, would be more expensive. Some of these tariffs from the 20 to 30% or higher, things that farmers use, inputs that come from overseas, would definitely become pricier. If tariffs go into effect, countries will respond, either they retaliate with their own tariffs on us, or they may look elsewhere to buy.”

What does past history show when it comes to retaliation?

“We've seen in the past. China put on some higher tariffs, they ended up about 10% more. Other countries don't have a big history of retaliating. Even though they get higher tariffs, they don't usually put higher tariffs on what they get from us. But then again, they may look to purchase elsewhere.”

AFBF’s, Dave Samuelson.