U.S. President Donald Trump imposed 25% tariffs on imports from Mexico and Canada on Tuesday, while doubling duties on Chinese goods to 20%.
This move has triggered retaliation from major U.S. trade partners, with Canada imposing 25% tariffs on more than $20 billion in U.S. imports, and China announcing additional tariffs of 10% to 15% on agricultural products starting next week. Mexican President Claudia Sheinbaum also vowed retaliatory actions, with further details expected on Sunday.
These trade measures are likely to raise prices for U.S. consumers, particularly for food items such as meat, dairy, avocados, and fresh fruits and vegetables. Economists warn that the retaliatory actions from China, Canada, and Mexico could significantly impact the $191 billion U.S. agricultural export sector.
Together, these countries imported a total of $91 billion worth of U.S. agricultural goods in 2024, making them the top three markets for American farm products.
Soybeans, the top U.S. farm export by value, as well as corn, wheat, and meat exports, are especially vulnerable to the new tariffs. In 2024, U.S. soybean exports totaled $24.5 billion, a decline from $27.7 billion in 2023 and a record $34.4 billion in 2022.
Exports to China, a major buyer, decreased to $12.8 billion in 2024 from $15.1 billion in 2023 and a peak of $17.9 billion in 2022. U.S. corn exports also rose to $13.9 billion in 2024, up 6% from 2023, despite a significant drop in exports to China.
Meanwhile, wheat exports fell slightly to $5.9 billion, impacted by cheaper Russian supplies.
Beef exports grew by 5% in 2024, reaching nearly $10.5 billion, while pork exports totaled more than $8.6 billion, an increase of 6% compared to the prior year.
Mexico remained a major destination for both pork and corn exports, with U.S. agricultural exports to the country reaching $2.6 billion for pork and $5.6 billion for corn in 2024. Similarly, Mexico imported $1.05 billion worth of U.S. wheat.
On the import side, the U.S. reached a record $214.1 billion in agricultural imports in 2024, a 9% increase from the previous year.
The leading imports include baked goods, pasta, and cereals, as well as processed fruits and vegetables, fresh vegetables, and fresh fruits, which collectively amounted to billions of dollars in trade. These shifts in trade dynamics are expected to continue influencing both U.S. consumers and agricultural exporters.
