04-03-2025
Potential impacts for Siouxland farmers as new tariffs take effect
SIOUX CITY, Iowa (KCAU) — The Trump administration's new tariffs on Canada and Mexico, as well as increased tariffs on China, could soon have an impact on the agricultural industry here in Siouxland.
The new and increased tariffs took effect early Tuesday morning. Imports from Canada and Mexico will now be taxed at 25%, with Canadian energy products subject to 10% import duties. Meanwhile, the 10% tariff that Trump placed on Chinese imports in February has been doubled to 20%.
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The tariffs are expected to have impacts across a wide range of consumer products, everything from fresh produce to toys and car parts.
However, there could be significant impacts for farmers in particular, including right here in Siouxland.
The U.S. imports more than 90% of the potash used for fertilizer, and more than 80% of those imports come from Canada, according to a February report from the University of Illinois.
We shouldn't expect domestic production to be able to meet demand right away, either. The same report indicates the U.S. was responsible for less than one percent of global potash production in 2023.
Right now, potash costs average around $450 a ton, according to the most recent Iowa Production Cost Report from the USDA. Under the 25% tariff on Canadian goods, that could send prices up by more than $100 a ton.
However, farm-related products entering the U.S. aren't the only place we could see impacts on Siouxland's agricultural industry.
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Soon after the increased tariffs were announced, China responded with extra tariffs on major American farm exports.
Those include an additional 10% on soybeans, pork and beef, as well as 15% on corn and chicken entering China from the U.S., among others. The retaliatory tariffs are currently set to take effect on March 10.
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