Retaliatory Tariffs Placed on Agricultural Goods
Betty Resnick
Economist
Chad Smith
Associate News Service Editor, NAFB
With all of the news surrounding tariffs recently, the playing field might seem a bit murky. Chad Smith has the latest on where things stand.
Smith: After a flurry of moves and countermoves from the U.S., Canada, Mexico and China, several tariffs and retaliatory tariffs are in place. American Farm Bureau Federation Economist Betty Resnick has an update on the current state of play.
Resnick: We now have an additional 20 percent tariff on all Chinese products, and that went into effect in two different stages. The 25 percent tariff put on Canada and Mexico on March 4 has been paused until April 2 for USMCA-compliant products. Canada's retaliatory tariffs that started on March 4 are still in effect and have been expanded in response to our new tariffs on steel and aluminum from all countries.
Smith: Resnick says that, unfortunately, retaliatory tariffs will impact some agricultural products.
Resnick: China's new retaliatory tariffs impact about $21 billion in agriculture products, with an additional 15 percent tariff on chicken, cotton, corn, and wheat and ten percent on a slew of other ag items, including sorghum, soybeans, pork, beef, fruits and vegetables, and dairy products. Canada put a 25 percent tariff on approximately $5.8 billion of agriculture goods.
Smith: Canada’s retaliatory tariffs included wine, fresh fruits, poultry, and dairy. But, it’s important to remember that the situation is still in flux.
Resnick: The next big date we're tracking is April 2, and that's when the U.S. has said it will reveal and put into place its reciprocal tariff plan. The EU will also start its retaliatory tariffs stemming from our new aluminum and steel tariffs in April. So there's gonna be a lot of action that first half of April.
Smith:Learn more at fb.org/marketintel. Chad Smith, Washington.
