WASHINGTON, D.C. — President Donald Trump announced more extreme tariffs today, including against some of the U.S.’s major agriculture export trading partners. Counter-tariffs are widely expected to hit U.S. agricultural exports hard. The tariff war will likely raise costs for farmers, many of whom depend on fertilizer imports, and increase food prices for consumers, especially imports of fruits and vegetables.
Ben Lilliston, IATP’s director of climate and rural strategies, said, “This tariff fight comes as the Trump administration is breaking contracts with farmers and cutting programs designed for farmers to sell to local or regional markets. So, while export markets are being threatened, costs to farmers will likely rise, and programs that support domestic markets are being slashed. This is a recipe for disaster for many U.S. farmers.”
Karen Hansen-Kuhn, IATP’s director of trade and international strategies, commented that, “Trump is treating trading partners as enemies. They are not. We need to reform our trade policy, but abrupt and erratic tariff hikes with zero plans to stimulate sustainable production will cost thousands of people their jobs, both in the U.S. and in other countries, including key allies. Market disruptions mean that smaller- and medium-scale farmers are made even more vulnerable.”
IATP Executive Director Sophia Murphy said, “After an astonishingly inaccurate tour of U.S. economic history, Trump revealed the shocking scale of the tariffs proposed. They will have devastating consequences for small and medium enterprises, from farms to retailers and manufacturers across the country.” She added, “The U.S. food system is highly concentrated. The dominant grain traders and commodity processors have the market power to not just raise prices to cover the new cost of tariffs, but to use this opportunity to raise prices even higher. Tariffs add yet more opacity to supply chains already characterized by their lack of transparency.”
IATP is analyzing the Trump administration’s new tariffs in more detail to report on what they mean for farmers and our food system.
