AMERICAN ANGUS ASSOCIATION - THE BUSINESS BREED

President Adjusts Tariffs on Canada and Mexico

Ag secretary calls it a critical step in helping farmers.

March 7, 2025

white house

President Donald J. Trump on March 6 announced adjustments to tariffs imposed on imports from Canada and Mexico in recognition of the structure of the automotive supply chain that strives to bring production into America.

According to the White House announcement, duties imposed to address the flow of illicit drugs across the U.S. borders are now:

  • 25% tariffs on goods that do not satisfy the United States-Mexico-Canada Agreement (USMCA) rules of origin.
  • A lower, 10% tariff on energy products imported from Canada that fall outside the USMCA preference.
  • A lower, 10% tariff on potash imported from Canada and Mexico that falls outside the USMCA preference.
  • No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference.

The statement from the White House noted that while the situations at the northern and southern borders continue to require appropriate action from the governments of Canada and Mexico, the American automotive industry, which provides American jobs, should not suffer significant disruption just because of the structure of its supply chain.

U.S. Secretary of Agriculture Brooke Rollins praised the action to adjust tariffs on imports from Canada and Mexico that fall under USMCA in addition to the reduction of tariffs on potash, a key ingredient in fertilizers that farmers depend on.

“President Trump’s announcement, which includes a reduction of tariffs on potash not already covered under the USMCA from 25% to 10%, is a critical step in helping farmers manage and secure key input costs at the height of planting season while reinforcing long-term agricultural trade relations,” said Rollins. “The temporary tariff exemption for Canada and Mexico is a smart, strategic move to keep trade negotiations on course while delivering real results for American agriculture. Canada must commit to fair trade practices — including those in dairy, eggs and poultry, and Mexico must maintain open markets.”

Editor’s note: Article based on fact sheet from the White House and USDA news release.

2025 March cover

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