Ag Policy Blog

NOTE: This article was updated with more comments at 8:40 a.m. Central.

The opening response to President Donald Trump's tariffs came as expected with markets pushing lower in both stocks and commodities.

General farm groups are raising concerns about retaliation, but they also emphasized the need to press for greater market access as well. Within the cattle industry, two groups that seldom agree on anything both praised the president's actions.

Also, among the president's list of new tariff rates, Canada and Mexico -- the two top markets for U.S. agriculture -- were not hit with a new reciprocal tariff rate. China, Japan, the European Union, South Korea and Taiwan were the subjects of tariffs, based on overall trade imbalances.

R-CALF USA and the National Cattlemen's Beef Association (NCBA) each offered their support – but for different reasons. R-CALF USA backs tariffs to keep out imported beef and cattle while NCBA seeks actions that will drive up export sales that have fallen the past two years.

Trump pointed out during his press conference issues with beef, noting that Australia exported $2.8 billion in beef to the U.S. last year while refusing to buy any U.S. beef.

R-CALF has called for a tariff-rate quota on beef imports and advocated for 25% tariffs on imports of live cattle. That did not happen in Wednesday's announcement.

"Our nation's cattle and sheep sectors are losing farms and ranches at an alarming rate, with census data showing our beef cattle operations disappeared at the rate of over 21,000 farms and ranches per year during the five-year period between the two latest censuses. Tariffs will help put an end to the globalists' practice of using cheaper imports to reduce demand for domestic cattle and sheep, which causes domestic farms and ranches to fail," said Bill Bullard, CEO of R-CALF USA.

NCBA Senior Vice President of Government Affairs Ethan Lane attended the White House announcement and issued a statement of support for the administration's announcement, but most other agriculture groups reacted in highly negative terms.

"For too long, America's family farmers and ranchers have been mistreated by certain trading partners around the world. President Trump is taking action to address numerous trade barriers that prevent consumers overseas from enjoying high-quality, wholesome American beef," Lane said. "NCBA will continue engaging with the White House to ensure fair treatment for America's cattle producers around the world and optimize opportunities for exports abroad."

Looking at beef, the U.S. had a $2 billion deficit in trade in 2024. USDA data shows the U.S. exported $9 billion in beef products while imported $11 billion. Brazil is another country that exports $1 billion in beef to the U.S. but purchased none in return.

American Farm Bureau Federation President Zippy Duvall noted that more than 20% of American farm income comes from exports and said, "We encourage the administration to work toward a swift resolution to trade disagreements to avoid tariffs that put farmers and ranchers in the crosshairs of retaliation, and to pursue strategies that expand market opportunities for the men and women who grow the food every family in America relies on."

National Farmers Union President Rob Larew said, "One thing is certain: American family farmers and ranchers will bear the brunt of this global trade war. Policymakers must recognize that the consequences of these decisions extend far beyond the farm -- our entire food system and the communities it sustains are at stake."

Groups also noted that products under the USMCA will continue to flow, though possible tariffs could come from Canada and Mexico.

International Fresh Produce Association (IFPA) CEO Cathy Burns said the group "appreciates the administration's decision" to allow the continued trade of specialty crops, including fruits and vegetables, covered under the U.S.-Mexico-Canada Agreement (USMCA), but "remains concerned about the broader application of tariffs on global trading partners and the resulting disruptions to supply chains, market stability, and food prices worldwide."

The Northwest Horticultural Council said, "USMCA-compliant goods will continue to see a 0% tariff. What retaliatory tariffs might be applied to our apple, pear, and cherry exports as a result of the actions taken today remains to be seen."

Kip Eideberg, senior vice president of government and industry relations at the Association of Equipment Manufacturers, said the group appreciates the Trump administration's commitment to reviving American manufacturing and building an economy that puts American workers first. "While we agree that the key to a strong U.S. economy is building more products in America, we need certainty in the trade environment to make investments in domestic manufacturing. We are concerned that reciprocal tariffs on our trading partners will hurt our industry and our customers," Eideberg said.

On the dairy side, Becky Rasdall Vargas, senior vice president of trade and workforce policy for the International Dairy Foods Association, said, "IDFA supports the Trump administration's efforts to hold trading partners accountable and expand market access for U.S. dairy. However, broad and prolonged tariffs on our top trading partners and growing markets will risk undermining our investments, raising costs for American businesses and consumers, and creating uncertainty for American dairy farmers and rural communities. We urge the administration to engage directly with dairy stakeholders and swiftly pursue resolutions with our trading partners that strengthen U.S. dairy's global competitiveness."

The National Milk Producers Federation and U.S. Dairy Export Council said negotiations could achieve a level playing field for dairy producers who deal with both tariffs and non-tariff barriers.

"Tariffs can be a useful tool for negotiating fairer terms of trade. To that end, we are glad to see the administration focusing on long-time barriers to trade that the European Union and India have imposed on our exports," said Gregg Doud, president and CEO of NMPF. "The administration has rightly noted both countries' penchants for restricting sales of American products. In fact, 20% reciprocal tariffs are a bargain for the EU considering the highly restrictive tariff and nontariff barriers the EU imposes on our dairy exporters. If Europe retaliates against the United States, we encourage the Administration to respond strongly by raising tariffs on European cheeses and butter. We also appreciate the President's recognition of the sizable barriers facing U.S. dairy exports into the Canadian market."

As Doud has noted in the past, the EU has a large dairy surplus with the U.S. Canada, however, imported more than $1.1 billion dairy products from the U.S. last year while Canada's dairy exports to the U.S. were about $500 million in value.

U.S. dairy maintains a trade surplus globally. The U.S. exported $8.2 billion in dairy products in 2024 -- down from a record $9.5 billion in 2022. Imports in 2024 reached $5.8 billion, according to USDA.

Also see, "Trump Launches Reciprocal Tariffs on Most Trading Partners, Vows to Protect Farmers," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

(c) Copyright 2025 DTN, LLC. All rights reserved.