President Donald Trump this afternoon announced the administration is implementing tariffs on goods coming from Mexico, Canada, and China based on authority granted under the International Emergency Economic Powers Act (IEEPA) and because of the president’s prior national security emergency declaration at the nation’s borders regarding illegal immigration and to prevent the flow of fentanyl into the United States. The IEEPA allows tariffs to be executed immediately, though details on the mechanics of that process are not yet known.

MEXICO: President Trump is implementing a 25 percent tariff on Mexican goods. According to the White House, Mexican cartels have an alliance with the government of Mexico and endanger the national security and public health of the United States. The tariffs will remain in place until Mexico cooperates with the U.S. in the fight against drug traffickers and on border security.

CANADA: President Trump is implementing a 25 percent tariff on Canadian goods and a 10 percent tariff on Canadian energy resources. According to the White House, there is growing production of fentanyl in Canada, with enough fentanyl seized at the northern border last fiscal year to kill 9.8 million Americans. Additionally, illegal border crossings from Canada reached historic new highs every year of the previous four fiscal years. These tariffs will remain in place until Canada cooperates with the U.S. against drug traffickers and border security.

CHINA: President Trump is implementing a 10 percent tariff on Chinese goods. According to the White House, China plays the central role in the fentanyl crisis, with the Chinese Communist Party subsidizing chemical companies to export fentanyl while the country not only fails to stem the source of illicit drugs but actively helps this business. These tariffs will remain in place until the U.S. secures the full cooperation of the Chinese government.

The Executive Orders will be posted on www.whitehouse.gov. This follows the Jan. 20, 2025, memorandum on America First Trade Policy.

In the immediate term, the U.S. Customs and Border Patrol is the best source of information for importers bringing goods into the United States. Importers should expect these tariffs to begin in earnest within days, not weeks.

As previously noted, IFPA will continue to advocate its position on trade and tariffs, included below, with the Trump administration, media, and industry:

“IFPA believes that every nation that can feed itself should do so. And, like many agricultural organizations, we firmly support fair and thriving international trade. Fair trade expands markets, drives prosperity, and ensures access to fresh, nutritious foods worldwide.

“U.S. fresh produce growers and suppliers play a pivotal role in this system, feeding Americans and consumers worldwide while fostering mutually beneficial trade relationships. Fresh produce, specialty crops, and floral products are among North America's most actively traded commodities. A secure and sustainable food supply - domestic and worldwide - thrives with strong and reliable access to global markets.

“Targeted use of tariffs can be a tool for addressing challenges or inequities between trading partners. However, the broad application of tariffs can disrupt supply chains, threaten market expansion, increase costs for consumers, and place unnecessary strain on growers and producers.

“To improve the competitiveness of producers while keeping food affordable for consumers, IFPA advocates for swift and meaningful regulatory relief and reform as the most effective way to support agriculture and strengthen American food security. We look forward to working with the Trump administration to advance policies that empower growers, expand market access, and ensure a competitive, resilient agricultural sector that benefits producers and consumers.”

Update: On February 3rd, President Donald Trump announced that he paused for a month new 25% tariffs on goods entering the United States from Mexico. This was after Mexican President Claudia Sheinbaum agreed to immediately send 10,000 soldiers to her country’s border to prevent the trafficking of fentanyl and other drugs.

See more of this developing news here

01.02.2025

Source: IFPA