Farmers Call for Resolution to North American Tariffs

A striking letter from dozens of business and ag groups to the Trump administration says the damage to U.S. farmers, ranchers and manufacturers from Canada and Mexico’s retaliatory duties “far outweighs any benefit that may accrue to them” under the U.S.-Mexico-Canada Agreement, Politico reported.

Two months after the USMCA was signed, Trump’s steel and aluminum tariffs remain in place—as do Canada and Mexico’s retaliatory duties on more than $15 billion in U.S. goods.

More than 45 groups, including the National Pork Producers Council and National Corn Growers Association, urged Trump’s top trade and economic officials “to resolve this matter so that zero-tariff North American trade can resume, and we can turn our attention to working with you to gain prompt congressional approval of the USMCA.”

A policy brief from Purdue University found that USMCA would boost U.S. farm exports to Canada and Mexico by about $454 million compared with NAFTA, driven by higher dairy and poultry sales. But when the retaliatory duties are factored in, it brings U.S. ag exports to a net loss of $1.8 billion.

The report suggests U.S. ag exports would drop $9.4 billion if USMCA is rejected by Congress and Trump withdraws from NAFTA.

Source: Politico