The American Soybean Association (ASA) expressed deep concern over the implementation of new tariffs by the Trump administration, warning of potentially devastating consequences for U.S. soybean farmers and the broader agricultural sector.
The 25% tariffs on goods from Mexico and Canada, which took effect early Monday, have already prompted retaliatory measures from both countries. Additionally, a 10% tariff increase on Chinese imports has led to swift retaliation targeting U.S. soybeans.
Caleb Ragland, ASA president and soybean farmer from Kentucky, emphasized the gravity of the situation. "Farmers are frustrated. Tariffs are not something to take lightly and 'have fun' with," Ragland said. "Not only do they hit our family businesses squarely in the wallet, but they rock a core tenet on which our trading relationships are built, and that is reliability."
The soybean industry, which exported 46.1 million metric tons valued at nearly $24 billion in the 2023/2024 marketing year, faces significant challenges. Farmers are still recovering from the 2018 trade war with China, which resulted in over $27 billion in agricultural losses, with soybeans accounting for 71% of that figure.
The ASA highlighted the importance of Mexico and Canada as trading partners, noting that Mexico is the second-largest customer for U.S. soybean products, while Canada is a crucial supplier of agricultural inputs like potash.
With commodity prices down nearly 50% from three years ago and high input costs, farmers are urging the administration to reconsider the tariffs and pursue non-tariff solutions in ongoing negotiations.
