Back And Forth On Tariffs Continues
President Donald Trump delayed 25 percent tariffs against Canada and Mexico until April 2 but doubled down on Chinese tariffs, levying another 10 percent tariff on Chinese imported goods on top of an earlier 10 percent tariff.
The United States had been scheduled to begin collecting a 25 percent tariff on nearly all goods from Mexico and Canada starting at 12:01 a.m. March 4, according to a draft public notice of the rules posted March 3. However, Trump paused implementation of the tariffs on Canadian and Mexican products covered by the U.S.-Mexico-Canada Agreement (USMCA) until April 2 as part of last-minute deals.
The 25 percent tariffs would bring U.S. tariff levels to their highest since 1943, according to Yale University’s Budget Lab, a non-partisan economic research institute. Trump has promised additional reciprocal tariffs on almost every other country.
Canada, China Retaliate
As of press time, Canada was still prepared to impose a 25 percent retaliatory tariff on $30 billion in U.S. goods, despite Trump pausing U.S.-imposed tariffs for a month.
Doug Ford, the premier of Ontario, said his government could end a contract with Elon Musk-owned satellite internet service Starlink and shut off exported power to the United States. According to the U.S. Energy Information Administration, Canada exported about 27 million MWh to the United States in 2024, although that figure been diminishing recent years. Ontario provides electricity to parts of Minnesota, New York and Michigan.
Ford said March 5 that, as long as the threat of tariffs continues, Ontario’s position would remain the same.
Tensions with Mexico appeared to deescalate following a phone conversation between Trump and Mexican President Claudia Sheinbaum, who thanked Trump in a post on X for a “respectful” discussion about the tariffs he had imposed.
“After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the USMCA Agreement,” Trump wrote on Truth Social on March 6 after the call with the Mexican president.
Reacting to Trump’s tariffs, China retaliated with a list of its own on 740 U.S. agricultural products, including soybeans, Reuters reported. China’s Ministry of Finance announced the tariffs March 4 on its website, saying, “The U.S. unilateral imposition of tariffs undermines the multilateral trading system, exacerbates the burden on U.S. enterprises and consumers and undermines the foundation of economic and trade cooperation between China and the United States.”
China will add 15 percent tariffs on U.S. chicken, wheat, corn and cotton, which it grouped in Annex 1. Annex 2 products will receive an added 10 percent tariff, including sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. Categories such as vegetables or aquatic products contained hundreds of individual items, ranging from frozen haddock to onions. Comparing China’s list against U.S. census data, Reuters estimated the tariffs could affect $21 billion in goods.
Farmers Concerned
U.S. agriculture groups expressed concern about the potential effects of tariffs. American Farm Bureau Federation President Zippy Duvall said, “Farmers support the goals of ensuring security and fair trade with other nations, but additional tariffs, along with expected retaliatory tariffs, will take a toll on rural America. Farmers and ranchers are concerned with the decision to impose increased tariffs on imports from Canada, Mexico and China—our top trading partners. Last year, the U.S. exported more than $83 billion in agricultural products to the three countries.
“Approximately 85 percent of our total potash supply–a key ingredient in fertilizer–is imported from Canada,” Duvall added. “For the third straight year, farmers are losing money on almost every major crop planted. Adding even more costs and reducing markets for American agricultural goods could create an economic burden some farmers may not be able to bear.”
Illinois Farm Bureau President Brian Duncan said, “Illinois Farm Bureau urges President Trump to honor the USMCA, which was successfully negotiated during his last term, and to find other methods to combat illegal drugs and secure our border. We remain deeply concerned with the use of tariffs and their potential to spark retaliation on America’s farmers.”
Illinois is the third largest exporter of agricultural commodities in the United States. Total exports from Illinois in 2023 were estimated at $81 billion, of which $13.7 billion was attributed to agriculture.
