Retaliatory Tariffs Could Impact Agriculture If Implemented
Betty Resnick
Economist
Chad Smith
Associate News Service Editor, NAFB
Tariffs on Mexico and Canada are set to go into effect next week, and Canada has already announced plans for retaliation. Chad Smith has more.
Smith: With time running short on the 30-day delay of implementation of tariffs on Canada and Mexico, the U.S.’s neighbors to the north have already announced plans for retaliation. Betty Resnick, an economist with the American Farm Bureau Federation, says this all traces back to an executive order from the start of this month.
Resnick: So, these retaliatory tariffs come from that February 1 executive order from the White House, which threatened to put 25 percent tariffs on most Canadian and Mexican products and ten percent on Chinese products starting on February 4. So, while those tariffs on China went into effect, the tariffs on Canadian and Mexican products were paused.
Smith: Prior to the pause on tariffs, Canada published a large list of goods that would face a 25 percent retaliatory tariff, many of which are ag and food products.
Resnick: For ag products, the list did include almost 400 agricultural HS codes. Those are the individual products that they charge tariffs against. These included some poultry, pork, and dairy products, several row crop products, including wheat, barley and rice, some fresh fruits and vegetables such as oranges, tomatoes and green beans, and a whole bunch of processed food products like chocolates, pasta, and soup.
Smith: The tariffs on Mexico and Canada are set to begin next Tuesday, March 4.
Resnick: If we do that, Canada’s retaliatory tariffs would also enter into force next Tuesday. Canada has also stated previously that if the tariffs were to remain in effect, they'll impose further tariffs on an additional 125 billion dollars of U.S. products, which could expand to all U.S. agricultural products exported to Canada.
Smith: Keep an eye on the Market Intel page at fb.org for a forthcoming report. Chad Smith, Washington.
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