Canadian, Mexican specialty crops spared in new wave of tariffs
By
Ryan G. Beckman
Canadian, Mexican specialty crops spared in new wave of tariffs
On Wednesday, April 2 President Trump declared that foreign trade and economic practices have created a national emergency. As a result, his administration's on-again, off-again tariffs are back on with a baseline 10 percent rate across the board — going higher for specific countries, nearly hitting 50 percent for some.
According to the current plan, Canada and Mexico are unaffected with the previous fentanyl/migration order remaining in effect. This means United States–Mexico–Canada Agreement compliant goods, including specialty crops, will continue to see a 0 percent tariff, non-USMCA compliant goods will see a 25 percent tariff and non-USMCA compliant energy and potash will see a 10 percent tariff.
In the event the aforementioned orders are terminated, USMCA-compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12 percent reciprocal tariff.
American Farm Bureau Federation President Zippy Duvall said “increased tariffs threaten the economic sustainability of farmers who have lost money on most major crops for the past three years."
Duvall noted that more than 20 percent of farm income comes from exports; additionally farmers rely on imports for crucial supplies like fertilizer and specialized tools. "Tariffs will drive up the cost of critical supplies, and retaliatory tariffs will make American-grown products more expensive globally," he said. "The combination not only threatens farmers’ competitiveness in the short-term, but it may cause long-term damage by leading to losses in market share."
IFPA CEO Cathy Burns said it is critical to reduce trade barriers so consumers continue to have access to fresh, affordable produce and floral products while supporting the growers and businesses that sustain the industry.
"IFPA remains concerned about the broader application of tariffs on global trading partners and the resulting disruptions to supply chains, market stability and food prices worldwide," said Burns. "The global trade of fresh produce is essential to the health and well-being of people in every nation. Targeted use of tariffs can be a tool for addressing inequities between trading partners, but broad application of this blunt tool often disrupts markets, raises consumer costs and places unnecessary strain on growers and producers across the supply chain."
U.S. Apple Association President and CEO Jim Bair noted that all of the top five export markets for U.S. apples have been targeted: Mexico, Canada, Taiwan, Vietnam and India. In 2024 they combined to purchase $756 million worth of U.S. apples.
"As we painfully experienced with India in the past, U.S. tariffs can trigger retaliatory measures that restrict access to key export markets and harm apple growers across the country," said Bair. "It’s critical for the health of the entire U.S. apple industry to maintain strong, stable trade relationships with all of our current and potential export partners."
"Fresh produce trade is uniquely complex, shaped by seasonal and regional factors that require a well-functioning market for year-round availability," said Burns. "Once businesses lose market share, reclaiming it is difficult — if not impossible — dealing a lasting blow to an industry vital to food security and economic stability."