U.S. Mexico Canada Agreement
U.S. agricultural exporters depend on the binding nature of USMCA provisions to access its closest markets and make sales, lawmakers wrote in a letter to Ambassador Greer.
USMCA has been a boon for the American meat, livestock and poultry sector, along with the broader American food and agriculture economy and ancillary industries, The Meat Institute says in comments to the USTR.
Farmers and farm groups have mixed reactions and lingering questions following President Trump’s announcement of sweeping reciprocal tariffs. Will farmers receive aid to offset tariff impact? How will U.S. trading partners react?
In a Wednesday morning press conference, ahead of Trump announcing his global tariff plan, Sheinbaum says Mexico will “announce a comprehensive program, not a tit for tat on tariffs,” but added, “we have a plan to strengthen the economy under any circumstance.”
Tariff whiplash is consuming the commodity markets — and the possible impact is stirring up quite the debate. At present, President Trump says he’s sticking to his plan to impose additional tariffs on Canada, Mexico and China starting April 2.
Report details the areas seeing growth in exports and how they are tied to free trade agreements.
Mexico’s president said on Tuesday the country will respond to U.S. tariffs with a 25% tariff on U.S. goods, but she will hold off announcing the targeted products until Sunday.
The impacts of tariffs on U.S. red meat is yet to be determined, but industry remains hopeful in the process of negotiations.
President Trump says tariffs on goods from Canada and Mexico will now take effect on April 2, 2025.
Trump said Monday that his planned 25% tariffs on all Mexican and Canadian exports to the U.S. “are going ahead on time, on schedule,” meaning the duties would take effect on March 4 at the conclusion of a one-month suspension.
Secretary of Agriculture Brooke Rollins kicked off the 2025 Top Producer Summit on Tuesday morning, detailing her plan to advocate for trade. ‘We want to find market access for all our products,’ Rollins said.
The measures, effective March 12, eliminate country-specific exemptions and extend to downstream steel and aluminum products, affecting key suppliers such as Canada, Mexico, Brazil, and South Korea.
Just hours before the tariffs were set to take effect, Mexican President Claudia Sheinbaum announced the news on X, and President Donald Trump later confirmed. Mexico is the top destination for U.S. ag exports. The announcement from Canada came later on Monday.
Following President Trump’s decision to impose 25% tariffs on Canada and Mexico, Canada announced its own 25% tariffs on $155 billion worth of U.S. imports. Mexico also announced its own retaliatory measures, but no specifics were unveiled as of Sunday morning.
U.S. farmers and various trade groups are very apprehensive about not only the potential negative impacts of tariffs on the U.S. ag sector, but what they do to garner new trade agreements.
Speaking from the Oval Office, Trump justified the tariffs as a response to what he described as excessive migration, drug trafficking and unfair trade practices. While he suggested the tariff rate could further increase, he indicated a decision on whether oil imports would be exempt would come soon.
With a new presidential administration set to take over leadership this month, USMEF sees opportunities with current and new trade partners.
Canada is preparing for potential trade challenges following Trump’s threat of a 25% tariff on Canadian imports. The Canadian government is considering a proactive approach, including the possible early release of a retaliatory tariff list.
Threats of widespread tariffs and concerns about retaliation continue to stoke uneasiness in agriculture. With a growing trade deficit and hopes the U.S. could re-embark on the Phase One trade deal with China, could the focus back on trade be positive for agriculture?
In response to John Deere’s recent announcement about moving some of its production to Mexico, Trump expressed concern about the impact on American workers, stating, “It’s hurting our country. It’s hurting our workers.”
A trade dispute settlement panel set up under a major North American free trade agreement has rejected a U.S. complaint that Canada is improperly limiting access to its dairy market.
“Mexico’s decree, which runs counter to scientific findings and is in direct violation of USMCA, is negatively impacting American corn growers,” said Tom Haag, NCGA president.
During a bilateral meeting on Thursday, U.S. Trade Representative Katherine Tai discussed with Mexico’s Secretary of Economy Tatiana Clouthier various issues concerning energy and biotech corn.
Representatives from the U.S., Mexico and Canada will meet in Cancun, Mexico this week to discuss a series of disputes, including Mexican energy and biotech policies and Canadian dairy barriers.
Over the 29 years of free trade, U.S. ag exports to Mexico increased both in terms of volume and value, although there were some years where growth was not positive.
Currently, foreign meat that is processed in U.S. plants can be labeled “Product of USA.” Arun Alexander, Canada’s deputy ambassador, isn’t convinced this is a good practice.
Mexican President López Obrador hosted President Biden and Canadian Prime Minister Trudeau this week to discuss everything from methane reduction to the U.S./Mexico border wall.