President Donald Trump on March 6 signed executive orders announcing another 30-day postponement of implementation of across-the-board 25% tariffs on goods entering the United States from Mexico and Canada. All products covered by the U.S.-Mexico-Canada Agreement (USMCA) of 2020 are exempt from the new tariff until at least April 2. The tariffs, which were initially set to begin in early February before an initial 30-day pause, went into effect on March 4 before Trump’s March 6 announcement.
The duty rate applied to potash – a key ingredient in many staple farm fertilizers – has also been, at least temporarily, to 10%. The U.S. imports some 90% of its potash, and an estimated 85% of that comes from Canada. In a post on X, Secretary of Agriculture Brooke Rollins wrote that the president’s “decision to grant a lower 10% tariff on any potash imported from Canada or Mexico that falls outside the USMCA preference is strategic. It will keep negotiations on track and ensure farmers can buy much-needed fertilizer at the lowest price possible at the height of planting season.”
The USMCA currently in place stipulates duty-free trade for most goods across the three countries, though some products face specific restrictions, exemptions and qualification requirements.
American red meat exports in 2024 totaled $19.1 billion, per the U.S. Meat Export Federation (USMEF). Mexico, China and Canada combined to import about 40% of that total, at $8.4 billion.
In response to the latest announcement from the White House, Canada delayed until April 2 a second wave of retaliatory tariffs it had planned to impose on imports from the U.S.
Trump has said that almost every country with which the U.S. does business could face reciprocal tariffs in coming months, which the administration says will be consistent with levies those countries impose on U.S. goods.
While some agriculture and cattle organizations, such as R-CALF USA, have staunchly and vocally backed Trump’s proposed tariffs, others have been more restrained in their public comments.
“Ensuring the safety of America’s families and leveling the playing field for trade is a worthy goal, but unfortunately, farmers and rural communities often suffer from tariff retaliation,” American Farm Bureau Federation President Zippy Duvall said in a statement. “More than 20 percent of U.S. farm income comes from exports, with Mexico and Canada being agriculture’s largest trading partners. … We encourage the administration to continue working toward permanently resolving issues with Mexico and Canada to preserve important markets and to ensure farmers have access to the supplies they need to keep America’s pantries stocked.”
“We are hopeful that the scope and duration of tariffs will be limited to avoid impacts to consumers and ranchers that may result from ensuing supply chain disruptions,” said National Cattlemen's Beef Association (NCBA) executive director of government affairs, Kent Bacus, in a statement to media outlets. “We encourage President Trump to focus his tariff strategy on removing trade barriers and supporting more opportunities for U.S. farmers and ranchers to sell their high-quality beef abroad.”
