President Trump Announces Sweeping Tariff Ranging from 10 to 49 Percent
On Wednesday, President Donald Trump signed an Executive Order regarding reciprocal tariffs. In summary, the Order imposes a 10% across-the-board tariff on all imports to the United States from all trading partners, plus higher reciprocal tariff rates for a select group of other countries that the White House determined had placed higher trade barriers on goods from the United States.
Canada and Mexico are exempt from these new tariffs, and the existing fentanyl/migration tariffs remain in effect and are unaffected by this order. According to the White House, “This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.” If the existing fentanyl/migration tariffs are terminated, non-USMCA compliant goods would be subject to a 12% reciprocal tariff, but these reciprocal duties would “not apply to energy or energy resources, to potash, or to an article eligible for duty-free treatment under USMCA that is a part or component of an article substantially finished in the United States.” (Executive Order Section 3(e))
The President imposed these new across-the-board and reciprocal tariffs under the authority of the International Emergency Economic Powers Act (IEEPA), meaning they are in place indefinitely until he terminates or changes them. IFCA is looking over the language of this Executive Order. We will send out more information and how it’s going to affect our industry in the coming days.
The FarmDoc team at the University of Illinois put out additional information in the Wednesday announcement. Click here to view that information.
Canada and Mexico are exempt from these new tariffs, and the existing fentanyl/migration tariffs remain in effect and are unaffected by this order. According to the White House, “This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.” If the existing fentanyl/migration tariffs are terminated, non-USMCA compliant goods would be subject to a 12% reciprocal tariff, but these reciprocal duties would “not apply to energy or energy resources, to potash, or to an article eligible for duty-free treatment under USMCA that is a part or component of an article substantially finished in the United States.” (Executive Order Section 3(e))
The President imposed these new across-the-board and reciprocal tariffs under the authority of the International Emergency Economic Powers Act (IEEPA), meaning they are in place indefinitely until he terminates or changes them. IFCA is looking over the language of this Executive Order. We will send out more information and how it’s going to affect our industry in the coming days.
The FarmDoc team at the University of Illinois put out additional information in the Wednesday announcement. Click here to view that information.
